:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/COBWI2FT5BBMNMTJWZ6R6HHSQQ.jpeg "Revision of the agreement: the IMF will formalize the new reserve objectives of the agreement with Argentina")
Next Monday, the technical staff of the International Monetary Fund dedicated to the negotiation and monitoring of the current agreement with Argentina will formalize a revision of the reserve objectives.
The drought is already hitting the economy hard: incomes and exports have fallen
The January data shows a raw impact on the main variables, including the return of the trade deficit. Public spending soared in January, rising 111%, more than 10 points above inflation
Both the members of the economic team accompanying Minister Sergio Massa to the meeting of G20 ministers and central bankers in India and those negotiating in Washington with the Fund’s technicians have agreed with the Fund to review the reserve targets for this year (5.8 billion dollars in net terms had to be added), in recognition of the impact of the war in Ukraine and, in particular, the drought.
Senior sources on the economics team have explained that they prefer not to specify the new targets, which will be announced by the IMF in Washington, not a matter of “waiver” or waiver of targets, but of a revision of the agreement in detail. part of the reserves for 2023, Therefore, the approval of the agency’s board of directors is not required.
Indian G20: Massa to call for measures to offset economic effects of drought and war in Ukraine
The Head of Finance Palace has arrived in Bangalore City to attend the Finance Ministers and Central Bank Chairpersons Summit, and also today he will hold bilateral meetings with the Treasury Secretary, Finance Minister of India and the Vice Minister of Finance of China
The review will take into account quarterly and annual targets, again in terms of reserves. But there will be no change to the fiscal and monetary targets, which the economy and the Fund see as an “anchor point” of the deal.
The priority of the economic team, working in tandem with Massa and those accompanying him to the meeting of G20 ministers and central bankers in India, as well as the technicians who are in Washington technically negotiating with the IMF, was “to adapt the program to reality”, taking into account both the impact of the war in Ukraine and above all and prospectively, that of the drought on the countryside, production and agro-industrial exports of the Argentina.
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This happened during an official meeting held by the head of the Palacio de Hacienda, Sergio Massa, with Jay Shambaugh, under-secretary for international affairs. In the conclave, they also discussed the negotiation with the IMF and the impact of the drought which penalizes the country’s agricultural production.
In this way, he says, the economic team is the Fund’s own staff who negotiated and accepted the new reserve objectives (which will be formalized on Monday), so that throughout the year it will not be necessary to constantly review quarterly goals and request “waivers” or exemptions for not meeting goals throughout the year. In the meantime, says the economic team, work is continuing on the fiscal order, the accumulation of reserves and the monetary order.
News in development: