Wednesday, October 4, 2023
HomeEconomyIMF expects to reach deal with Argentina in coming days

IMF expects to reach deal with Argentina in coming days

BUENOS AIRES (Reuters) – The Washington-based International Monetary Fund (IMF) should finalize within the next few days the basis for a staff-level agreement with Argentina to review the country’s billion-dollar loan to the IMF, the Washington-based IMF said on Sunday.

“Teams from the Argentine Ministry of Economy and Central Bank, as well as IMF staff, have completed core parts of the technical work for the next review,” the IMF said on Twitter.

“The central target and the parameters that underlie the “staff-level agreement” have been agreed and are expected to be finalized in the coming days before the Argentine plan is reviewed.

Argentina faces around $3.4 billion worth of maturing IMF debt between July and Aug. 1, at a time when the central bank’s net reserves are in a deficit of about $6.5 billion.

The South American country wants to change its agreed economic goals for Argentina Economy ministry sources told Reuters that 2023 second half payment plans are over and a staff-level agreement could be signed on Wednesday or Thursday.

Argentina, also struggling with high inflation and a deep fiscal deficit, has seen its foreign currency receipts take a sizeable hit due to a severe drought that has crippled agriculture, its main source of exports.

The IMF said the deal aimed to consolidate “fiscal order and strengthen reserves,” acknowledging the impact of the drought as well as damage to exports and tax revenues .

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