IMF Board unanimously approves Argentina deal
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Loading... - Luisa Blanchi
- 28 Mar 2022
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The International Monetary Fund's board of directors Friday approved unanimously the latest US$ 45-billion program signed with Argentina, with which the South American country has avoided default.
In addition to the agreement, the IMF board approved the immediate disbursement of US$ 9.65 billion and also gave the administration of President Alberto Fernández the chance to pay the next two maturities without defaulting.
The program, which is the twenty-second for Argentina since it joined the IMF in 1956, replaces the one signed in 2018 under then-President Mauricio Macri. At US$ 57 billion, it was the largest in the IMF's history.
Friday's voting meant the end to little over a year of negotiations, which included ith the approval of the Extended Facilities agreement reached between February 2021 and March 2022.
In the near future, Argentina and the IMF will have 12 years of a direct relationship. During the first two and a half years, the country will have to comply with 10 reviews every three months.
The Israeli-Brazilian Illan Goldfajn, IMF Managing Director for the Western Hemisphere, will be the person responsible for Argentina's compliance with the agreement, and the one whose signature will be required to deem a stage complete.
Argentina will make payments between 2026 and 2034, thus gaining 4 and a half years without sacrificing whatever little assets may be left in its now-revitalized coffers.
The Board's approval allowed an immediate disbursement of US$ 9.8 billion, which will be allocated to pay extremely short-term maturities and to strengthen the Central Bank's reserves, which would now surpass US$ 43 billion, their highest amount in six months..
The IMF also extended until March 31, the deadline for Argentina to pay the interest and principal originally due last Tuesday 22, for a total amount of close to US$ 2.8 billion, it was announced. Read More...
