IMF and Argentina set ground for Staff Level Agreement on $45 billion, Macri-era debt
The International Monetary Fund (IMF) announced on Sunday midday that it has agreed on primary objectives for a new Staff-Level Agreement with Argentina.
“The main objectives and parameters that will serve as the grounds for a ‘Staff-Level Agreement’ have been agreed on,” the IMF announced via Twitter.
Argentina and the IMF agreed on a disbursement program for the second semester of 2023 - including a potential advance of over $8 billion.
Government sources told the Herald they expect the staff level agreement — a preliminary technical understanding subject to the IMF board’s approval — to be closed between Wednesday and Thursday.
The agreement would allow the country to continue servicing its $45 billion IMF debt, granted to former President Mauricio Macri during his failed, 2019 re-election campaign - reportedly at then-President Donald Trump's insistence.
The deal recognizes the harsh impact a record drought has had on the country’s exports and fiscal income, with agricultural GDP down 43.8% in May from a year earlier (and 5.5% overall).
Amid the worst drought in a century, Argentina's central bank reserves have so far this year plummeted by $19 billion, to $25.5 billion - less than three months of goods and services imports.
Argentine officials also credited White House and congressional support for today's agreement, while noting that IMF officials had disclosed that right-wing Argentine figures lobbied hard against any agreement - preferring instead "to let it all blow up" ahead of elections this October.
At: https://buenosairesherald.com/economics/imf-and-argentina-set-the-ground-for-staff-level-agreement
Argentine Economy Minister Sergio Massa and IMF Deputy Managing Director Gita Gopinath share a light moment during Massa's March visit to IMF headquarters - when the last IMF loan disbursement to the country was agreed on.
The IMF's quarterly loan disbursements to Argentina - the centerpiece of a March 2022 refinance agreement - have been critical to Argentina's repayment of a $45 billion IMF debt, granted to former President Mauricio Macri during his failed, 2019 re-election campaign - reportedly at then-President Donald Trump's insistence
A record drought this year - estimated to have cost Argentina some $20 billion in export earnings - led to a renegotiation of the 2022 refinance agreement.
