Once a deal seemed assured, Buenos Aires formally opened consultations with the IMF to agree new terms on the repayment of a $44 billion bailout loan agreed in 2018. © 2020 International Monetary Fund. Statement by IMF Managing Director Kristalina Georgieva on Argentina March 20, 2020 At the request of the Argentine authorities and reflecting close collaboration with them, the International Monetary Fund (IMF) released today a technical note prepared by IMF staff on Argentina… “I have the impression that she sees better than anyone the difficulties that exist in Argentina.”, Fernandez said an agreement with the Washington-based crisis lender is “basically necessary to give the economy predictability.”. By continuing to use this website without disabling cookies in your web browser, you are agreeing to our use of cookies. After assuming the presidency last December, Fernandez put repayments on hold and renounced outstanding tranches of the bailout, saying Argentina already had enough debt. The IMF announced in late September that it will carry out a mission on Argentina’s debt restructuring, after talks on a new accord resumed last month. All rights reserved. Such intervention would be unsterilized. The draft federal budget strengthens the social safety net. Argentina joined the International Monetary Fund (IMF) on September 20, 1956[1] and has since participated in 21 IMF Arrangements. One will pursue an ongoing trade war, the other may... STOCKHOLM: Americans Harvey J. President Aldolfo Rodriguez Saá resigned shortly after[6] the announcement of Argentina’s default. The plan is designed to reduce the threat of runaway inflation by ending the creation of money, and to restore a well-functioning floating exchange rate. BUENOS AIRES: Argentina President Alberto Fernandez said on Sunday (Monday in Manila) he hoped to reach an agreement with the International Monetary Fund to refinance a $44 billion loan “as soon as possible.” His announcement comes ahead of the arrival Tuesday of an IMF mission to focus on the country’s debt restructuring. An IMF team, led by Julie Kozack Deputy Director of the Western Hemisphere Department and Luis Cubeddu Mission chief for Argentina, visited Buenos Aires from February 12 to 19, 2020 to discuss the recent macroeconomic developments and learn more about the Argentine authorities’ economic plans and policies. Over the past 63 years, Argentina has frequently used the resources of the IMF and holds the record for the largest loan distributed, reaching nearly $57 billion in 2018. After the deal was signed, economy minister Martin Guzman said the next step will be to reach an agreement with the IMF for a new credit program. Augmentation and Re-phasing of Fund Resources. IMF Members' Quotas and Voting Power, and Board of Governors, IMF Regional Office for Asia and the Pacific, IMF Capacity Development Office in Thailand (CDOT), IMF Regional Office in Central America, Panama, and the Dominican Republic, Financial Sector Assessment Program (FSAP), Currency Composition of Official Foreign Exchange Reserves, Press Release: IMF and Argentina Authorities Reach Staff-Level Agreement on First Review Under the Stand-By Arrangement. The resources available in the program are no longer expected to be treated as precautionary and the authorities have requested the use of the IMF financing for budget support. [5] However, in 2006 under the leadership of Néstor Kirchner, Argentina was able to pay off its debts, thus escaping Article IV IMF surveillance. The first Stand-By Arrangement (SBA) began on December 2, 1958, and the most recent Stand-By Arrangement began on June 20, 2018, and will expire on June 19, 2021 . You have successfully joined our subscriber list. [16], Argentina and the International Monetary Fund (IMF), "History of Lending Arrangements: Argentina", "Financial Position in the Fund for Argentina as of October 31, 2019", "Argentina and the IMF: What to Expect with the Likely Return of Kirchnerism", "IMF Executive Board Approves US$50 Billion Stand-By Arrangement for Argentina", "Can Argentina's new president save the country's economy? However, in the event of extreme overshooting of the exchange rate, the BCRA may conduct limited intervention in foreign exchange markets to prevent disorderly market conditions. Argentina hopes for IMF deal ‘as soon as possible’. The revised package includes: i) an acceleration in the improvement in the fiscal position; ii) a shift to monetary aggregates as the nominal anchor; iii) a floating exchange rate; iv) an increase in the level of benefits in the main social safety net programs. [3] The most recent arrangement approved Argentina to borrow SDR 40,714.00 million, of which Argentina has borrowed SDR 31,913.71 million[4] as of December 10, 2019. BUENOS AIRES: Argentina President Alberto Fernandez said on Sunday (Monday in Manila) he hoped to reach an agreement with the International Monetary Fund to refinance a $44 billion loan “as soon as possible.”. “What I hope is that we continue working as well as we have done up to now, that we can find quick answers to the concerns they have and that we can reach an agreement, a program as soon as possible,” he added. THE Department of Education (DepEd) launched its Public Assistance Command Center on Monday, the start of distance learning classes. THE Department of Education (DepEd) on Monday said that all public schools will accept late enrollees until mid-November to accommodate private school transferees. [12], As of October 27, 2019, Alberto Fernández won the presidency in the general election (by 48.1% of the vote) against Mauricio Macri among others. Argentina’s troubles have been exacerbated by the coronavirus pandemic, with more than a third of the country’s population of 44 million living in poverty. Interview with Alejandro Werner on the Latest Economic Developments in Latin America. Argentina’s strengthened economic plan aims to bolster confidence and stabilize the economy through a reduction in the budget deficit, the adoption of a simpler monetary policy framework, and freely floating the exchange rate (with foreign currency intervention limited to cases of an extreme overshooting of the currency). It also includes a 12 percent expansion of public childcare in an effort to raise female labor force participation (particularly for lower income households). Over the past 63 years, Argentina has freq… [10] The goals of the 2018 Stand-By Arrangement are "to strengthen the country’s economy by restoring market confidence via a consistent macroeconomic program that lessens financing needs, puts Argentina’s public debt on a firm downward trajectory, and strengthens the plan to reduce inflation by setting more realistic inflation targets and reinforcing the independence of the central bank[11]". The floor on social assistance spending and the framework for adjusting social spending will be maintained. The revised Arrangement approved by the IMF Executive Board allows the authorities to draw the equivalent of about US$5.7 billion, bringing total disbursements since June to about US$20.4 billion, and brings the total amount available under the program to US$56.3 billion by end-2021. [7] On December 5th, 2001 the IMF made an announcement that they would no longer provide aid due to Argentina's inability to meet the conditionality set by the IMF to receive loans. Inflation stands at 40 percent and the IMF expects Latin America’s third largest economy to shrink 10 percent this year. The authorities are fully committed to reducing the federal government’s financing needs and placing public debt on a firm downward path. International Monetary Fund (IMF) dignitaries are scheduled to arrive in Buenos Aires on Oct. 6 to begin exploratory negotiations with the Argentine government, El Economista has reported. “Argentina’s intention is to seek IMF financing for the sole purpose of full repayment of the $44 billion that is still owed to the fund,” he said in a telephone interview. A total of about US$56.3 billion would be made available to Argentina for the duration of the program through 2021.Fund disbursements for the remainder of 2018 would more than double compared to the original Fund-supported program, to a total of US$13.4 billion (on top of the US$15 billion already disbursed). November 30th marks the beginning of the 2001 economic crisis in Argentina[6] caused by the rising fear at how rapidly the Argentinian peso was being devalued. The IMF Press Center is a password-protected site for working journalists. Cineworld temporarily shuts cinemas on virus impact, 3 win Nobel medicine award for hepatitis C virus discovery, 2020 Nobel season opens with medicine prize, DepEd to accept late enrollees until November 21, DepEd launches hotlines for class opening assistance, Tropical depression to enter PH, 2 LPAs spotted.