IMF Expects Deal With Argentina in the Coming Days – On Sunday, the Washington-based International Monetary Fund (IMF) announced that it will soon conclude the groundwork for a staff level agreement with Argentina regarding the assessment of the country’s $44 billion loan from the IMF. “The teams of the Economy Ministry and Central Bank of Argentina and the IMF staff have finished the core aspects of the technical work of the next review,” the IMF said on Twitter.
“The central objectives and parameters that will be the basis for a “staff level agreement” have been agreed, which is expected to be finalized in the next few days before moving towards the review of the Argentina program,” it added. Between July 31 and August 1, Argentina is facing IMF maturities amounting to approximately $3.4 billion.
People Also Read: IMF Has Not Seen Specific Proposal on BRICS Currency
However, during this period, the central bank’s net reserves are in a deficit of about $6.5 billion. Due to the severity of the financial crisis and the risk posed by the lack of reserves, the country is seeking to modify the economic objectives it previously agreed upon with the IMF. Additionally, Argentina aims to receive earlier disbursements from the IMF that were initially scheduled for this year.
A source from the Economy Ministry informed Reuters that the disbursement plan for the second half of 2023 has already been finalized, and there are prospects for sealing the staff level agreement on Wednesday or Thursday. Argentina is grappling not only with a severe financial crisis but also with high inflation and a significant fiscal deficit.
Furthermore, the country’s foreign currency income has been severely affected by a harsh drought, which has limited its primary source of exports, agriculture. The IMF said the agreement seeks to consolidate “fiscal order and strengthen reserves,” acknowledging the impact of the drought, as well as the damage to exports and tax revenues.