The Argentine government and the IMF announced a preliminary agreement on the terms of repayment of Argentina’s debt of 44 billion dollars.
“The teams of the Argentine Ministry of economy, the central bank and the International Monetary Fund have finalized the main aspects of the technical work on the upcoming revision,”the two sides said on their Twitter accounts.
The parties agreed on “the main objectives and criteria that will form the basis” of a body-level agreement”the final version of which, expected in the coming days, will make it possible to move on to the review of Argentina’s program”.”The agreement aims to strengthen the financial system and strengthen reserves, taking into account the severe impact of the drought and damage to the country’s exports and tax revenues,”the two sides explained.
On July 16, an Argentine delegation went to Washington to negotiate with the International Monetary Fund to soften the terms of an agreement reached in 2022 with the fund to refinance the country’s huge debts and obtain the expected payments.Argentina, which is holding presidential and legislative elections in October, failed to meet the goals of raising foreign currency reserves and reducing the fiscal deficit, set for the first and second quarters of this year.
On June 30, with the sharp decline in cash reserves, Argentina resorted to the so-called”Special Drawing Rights”, assets created by the IMF to support the official reserve of countries, to make a payment of 2.7 billion dollars on June 30 to the IMF in a payment that came in part in Chinese yuan due to the shortage of the US dollar.
It still has to pay 2.5 billion dollars to the IMF on July 31.
