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ECONOMY | 30-06-2023 21:44

Argentina paid IMF as negotiations to continue in Washington

Government makes two payments owed to the International Monetary Fund before a Friday deadline; Senior officials Leonardo Madcur and Gabriel Rubinstein to hold discussions over a new staff-level agreement next week in Washington. 

Argentina’s government made two payments owed to the International Monetary Fund before a Friday deadline as discussions for a new staff-level agreement will continue next week in Washington. 

The International Monetary Fund said negotiations between its staff and Argentine officials will continue in the coming days, according to a statement by Julie Kozack, the IMF director of communications. Argentina “remains current on their financial obligations to the Fund,” Kozack said.

“IMF staff and the Argentine authorities will continue to advance their work in the coming days, with the aim of reaching agreement on the fifth review of the Fund-supported programme," said the IMF official.

“Technical discussions continue on a policy package to safeguard economic stability in the context of a challenging situation, partly affected by the historic drought,” Kozack added.

"Discussions are focused on strengthening macroeconomic policies to support reserve accumulation and improve fiscal sustainability, while protecting the most vulnerable. The Argentine authorities continue to remain current on their financial obligations to the Fund," concluded the statement.

The country used US$1 billion in yuan from a currency swap line with China and US$1.7 billion of special drawing rights (SDRs) issued by the International Monetary Fund for the repayment.

In a separate statement, Argentina’s Economy Ministry said a team led by senior officials Leonardo Madcur and Gabriel Rubinstein will travel to Washington early next week to close a staff-level agreement. Talks have dragged on for weeks for a new deal on the country’s US$44-billion programme.

Argentina’s currency is the worst performer in emerging markets this year. The Central Bank’s dollar reserves are at their lowest level since 2016, and when stripping out the swap line, gold and multilateral financing, its liquid cash reserves are in negative territory.

 

– TIMES/BLOOMBERG

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