The International Monetary Fund (IMF) approved this Wednesday a disbursement of 7,500 million dollars, about 6,903 million euros, for the battered accounts of Argentina. The operation is part of the fifth and sixth reviews of its refinancing agreement for the debt that the country has contracted with the agency. In practice, the new funds go to cover debt with the entity itself.
The announcement of the board of directors - which was postponed until after the celebration of the primaries in Argentina - is known on the same day that the Argentine Minister of Economy, Sergio Massa, plans to meet with the managing director of the IMF, Kristalina Georgieva. In his statement, the IMF recalls that the total disbursements made after the one announced today amounts to 36,000 million dollars.
The next review of the agreement is scheduled for November, after which Argentina hopes to obtain another disbursement of 2.750 million dollars, according to Massa indicated in a press conference after his meeting with Georgieva.
The funds announced this Wednesday, the minister highlighted, allow Argentina to have a "stability framework" until the end of November by "strengthening and increasing the reserves of the Central Bank."
In this review of the agreement, the IMF found that key objectives were not achieved due to the "unprecedented drought" that hit Argentina last year and the first months of this year, and committed "deviations of policies".
The Fund's board of directors approved exemptions for non-compliance, as well as modifications to the reserve accumulation target, the primary fiscal balance targets, and the monetary financing of the country's deficit. All this with Argentina's commitment to apply a new package of policies "to correct setbacks in economic policies, safeguard stability and achieve the objectives of the program."
Massa thanked the work of the team that negotiated the review of the agreement with the IMF and assured that Argentina cannot accept conditions on the part of the organization that affect the pocket of citizens. "We understand that Argentina must maintain a serious and healthy relationship with the IMF, but we must not accept impositions that hurt or damage the reality of Argentines," said the minister.
Massa already said this Wednesday that his bilateral meeting with Georgieva would serve to discuss "the entire disbursement procedure", taking into account the loans that Argentina has acquired from Qatar, China and the Development Bank of Latin America (CAF) to face the maturities with the Fund.
Argentina has a debt of 45,000 million dollars with the IMF, contracted during the Government of Mauricio Macri (2015-2019). The country and the agency reached a refinancing agreement in 2022, which is subject to temporary reviews and is linked to compliance with the agreed economic policies.
In the Argentine primaries, held on August 13, the victory of the ultra-liberal Javier Milei, with 30.04% support, turned the political table around and the IMF itself contacted him and the opposition candidate, the center-right Patricia Bullrich , the third most voted leader, behind Massa, to exchange economic positions in the event of a possible government.
