Ashmore latest..16 Dec 2024 21:52
Argentina
The government and the International Monetary Fund (IMF) are making progress in discussions toward a new USD 26bn loan arrangement that would have a high share of the principal disbursed at the start of the programme, according to a Friday report published in La Nación citing a “diplomatic source”.
https://www.lanacion.com.ar/economia/milei-se-acerca-al-fmi-y-habilita-un-intervencionismo-light-nid12122024/
.."There, Argentina raised the possibility of seeking a new agreement for 20,000 million Special Drawing Rights (SDRs, as the currency used by the IMF is known), which is equivalent to about US$26,260 million, of which a significant part could be disbursed as soon as the program is signed.
It would be the injection of fresh money necessary to be able to progress relaxation of exchange controls, of which President Javier Milei spoke in his last speeches...
In Washington there were meetings at the end of last week, but one, especially, marks the change of mood among the shareholders of the credit organization: it was on Friday, when there was a meeting between the representatives of the Treasury of the member countries of the G-7 – which includes the United States, Great Britain, Italy, Canada, France, Germany, and Japan – in which the Argentine case was discussed.
There, the sources confided, the program was discussed that later, once agreed, must be submitted to the Board of Directors of the organization. "Negotiations improved," said another source familiar with the details. "The previous program with the IMF would continue and there is talk of an additional short-term program. Because the IMF's perspective is to leave Argentina in the medium term. So the idea is to collaborate so that credit conditions improve and Argentina can also open the way to go out and finance itself in the markets," he continued....
Donald Trump is expected to take office beforehand since the hope is that, under a new Republican administration, Argentina can guarantee the endorsement of the United States on the IMF board. With 16% of the votes, it is the only country with veto power within the credit agency.
Like NO OTHER DEBTOR, Argentina will close the year having fulfilled one of the most difficult promises of all to the IMF: to achieve a significant fiscal surplus..."
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