The IMF confirmed that it sealed the agreement with Argentina and sent the US$4.7 billion that correspond to the seventh review of the agreement. This income was seen in the level of reserves and allowed the country to pay the debt maturities of January and February, which totaled almost US$2.8 billion.
A few weeks ago, the Government and the IMF technical staff had announced an understanding that unlocked a disbursement of US$4.7 billion to Argentina, on the occasion of the approval of the seventh review of the agreement.
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The coffers of the Central Bank (BCRA) already showed this afternoon the impact of the IMF's turn. Specifically, only about US$2,000 million arrived in the country because the pending payments for January, for about US$1,950 million, and the interest that fell due this February 1, which totaled US$840 million, were deducted from the US$4,700 million disbursement. .
As a result of that operation – and the first sale of US$10 million that the BCRA made in the exchange market after 33 consecutive rounds of purchases – reserves rose US$2,527 million this Wednesday and reached US$27,635 million.
The IMF approved the seventh review of the agreement
The Board of Directors approved the seventh review of the extended facilities program. According to the agency's statement, “an ambitious stabilization plan is being implemented to correct serious policy deviations in the last quarters of 2023.”
“The plan focuses on establishing a strong fiscal anchor along with policies to lastingly reduce inflation, rebuild reserves, address distortions and long-standing problems that were impediments to growth,” the IMF said.
Javier Milei met with the managing director of the IMF, Kristalina Georgieva, at the Davos forum. (Photo: X/@KGeorgieva).
According to the Fund, the core objectives of the agreement were reviewed and a series of waivers or waivers were approved for non-compliance with temporary exchange measures that encouraged the multiplicity of exchange rates. “The Board also approved an extension of the agreement until December 31, 2024, along with some rescheduling of planned disbursements within the existing amount of the program,” he reported.
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Likewise, he warned that to achieve the new goals, such as the primary fiscal surplus of around 2% of GDP, “temporary taxes” will be imposed on imports and “taxes on fuels will be strengthened, along with efforts to rationalize subsidies.” to energy and transportation, administrative costs and lower priority policies.”
“After the realignment of the exchange rate, exchange rate policy should continue to ensure reserve accumulation objectives. Important steps are being taken to address the large trade debt overhang and create a more transparent and rules-based import system. In addition, the authorities have committed to eliminate the remaining distorting exchange restrictions and multiple monetary practices in the short term, and to develop plans to gradually dismantle capital flow management measures, as conditions permit,” the agency closed. .