Argentina will defend its interests in negotiations with the IMF, assures Chief of Staff

The Chief of Cabinet of the Government of Argentina and candidate for vice president of the country, Agustín Rossi, assured this Saturday that the Argentine negotiators will defend the interests of the South American nation in the ongoing talks with the International Monetary Fund (IMF) to change certain terms of the refinancing agreement signed in March 2022.

“There is a very easy formula to reach a quick agreement with the IMF, which is to do and accept what the Fund says. If the agreement with the IMF is being delayed, it is because our negotiators are going to defend the interests of all Argentines.”assured Rossi in radio statements.

For several weeks, Argentina has been negotiating with the IMF to introduce changes in the fiscal, monetary and reserve accumulation goals agreed in 2022 and to advance the quarterly disbursements stipulated in the extended facilities agreement, which allowed to refinance debts for US$ 44,000 million.

This Friday, after speaking with the managing director of the Fund, Kristalina Georgievathe Argentine president, Alberto Fernandezadmitted that the talks with the organization, led by the Argentine Minister of Economy and presidential candidate, Sergio Massa, They were not easy, but he was confident of reaching an understanding.

Argentina, which suffers from serious macroeconomic imbalances and, in addition, has suffered during the first half of the year from the effects of a severe drought that had a full impact on its agricultural exports -its main source of income-, has experienced difficulties in meeting the goals agreed with the Fund.

The approval of the quarterly reviews carried out by the IMF depends on the fulfillment of these goals, which is necessary for the organization to transfer to Argentina the disbursements that allow it to pay the debt commitments with the organization itself.

Argentina, with few monetary reserves, must face maturities with the IMF for some US$ 3.4 billion between July 31 and August 1, so the negotiations are against time.

Rossi, who supports Massa in the main presidential formula of the ruling party ahead of the primary elections in August, did not want to give details about possible exchange measures in the coming days aimed at stopping the outflow of reserves through imports and encouraging the liquidation of exports, to increase the income of dollars.

However, in statements to the AM 750 radio station, the Chief of Staff commented that the loss of foreign exchange earnings this year for US$ 20,000 million as a result of the impact of the drought forces decisions to be made “often creative”looking for “damage the real economy as little as possible.”

“It is clear that, as you said Sergio Massaour goal as a government is going to be to pay (the IMF) 100% of the debt so that we can carry out economic policy without this IMF intervention, which always ends up being clearly complicated.”he added.

(With information from EFE)