IMF: What “difficult” countries are asking Argentina to close the agreement

Some call them “Harder” than the IMF Others simply present themselves as “pragmatists”. The fact is that a small block of countries that make up the fund’s board currently represent The biggest headache for the Alberto Fernandez government Upon agreement on a new program with the Authority.

Yesterday the Minister of Economy, Martin Guzman, He admitted that there were some problems or objections from the international front in the International Monetary Fund to reach an agreement and talked about it ‘There is still a lack of understanding by the international community’ to close the debt deal.

Later he learned that this front or “lack of international understanding” will be “Hard core” in the box directory Largely composed of representatives United States, Japan, Poland, Germany, Among other things.

IMF scrutiny: Government speaks of ‘financial fanaticism’ and violation of statute

As detailed for the historian Government sources involved in the negotiations in Washington in the claim that many of these “difficult” countries claim when closing the debt repayment agreement, relate to the fact that Argentina request to show “more updated data”.

In practice, this could mean a specific objection to the inflation, deficit or growth figures that Argentina has provided to show its economy figures. The “modernization” that they talked about in Casa Rosada and that the difficult countries in the IMF are supposed to demand responds to the understanding of some technicians in the negotiations in ‘More realistic characters’ Dell no.

They admitted in the government that the data submitted to the International Monetary Fund so far are the ones that appear in the draft 2022 budget, which was rejected by the opposition in the House of Representatives. There is a drop of c4% economic growth. 1 dollar: 131.1 US dollars; inflation to 33%; real salary at +4%; a primary deficit of 3.3%; A fiscal deficit of 4.9%., among other things.

“There are different views within the IMF board that must be taken into consideration,” he said. the historian A senior government official negotiates with Washington every step of the agreement that Alberto Fernndez is expected to close before March And it is at the first major repayment of the debt amounting to 44,000 million dollars contracted with the International Monetary Fund during the government Mauricio Macri.

In the International Monetary Fund, there are 24 executive directors elected from among the fund’s member countries. Just The United States, Japan, Germany, France, and the United Kingdom may elect a director without assistance from any other country.. China, Saudi Arabia, and Russia actually elect one director each. The other 16 directors are elected by blocs of countries.

Green light from the United States

In the list of difficult countries that would have requested an update of the data on the Argentine economy, there is United State That beyond the Republican administration change with Donald Trump The Democratic President Joseph Biden He didn’t change his mind about the Argentine economy much in the fund’s internal debate.

At the same time, there are countries like Japan demands Argentina clear rules of the game, more legal security and redefining barriers to trade. Part of these claims have been abandoned by the historian By Japanese Ambassador to Buenos Aires Takahiro Nakami.

“What we have emphasized for a long time is that What is important in Argentina is that there is a better business environment, including predictability of economic policy and legal security. All of this includes negotiating with the International Monetary Fund.”

When is the agreement with the IMF closed?

however, From Casa Rosada they stressed that it will not be long for Argentina to conclude an agreement with the International Monetary Fund They know that the demand for a credible economic plan has already been bypassed by Alberto Fernandez’s proposal to introduce a multi-year economic plan bill.

Hence, Guzmín in his interview yesterday for the Spanish newspaper bass He highlighted Argentina’s decision to want to settle quickly with the fund. Although he clarified: “It is necessary to obtain all the international consensus required to be able to reach an agreement between the two parties.”

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