The board of the International Monetary Fund will meet this Friday in order to analyze and certify the approval of the agreement to refinance Argentina’s debt with said entity, amounting to 45,000 million dollars, and generated during the Government of Mauricio Macri.
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This will be the last step in the negotiations between said financial entity and the South American nation, after Congress approved it. After said certification, Argentina must release a first amount of 9,800 million dollars, which will strengthen the reserves of the Central Bank.
This Friday’s meeting comes after the managing director of the IMF, Kristalina Georgieva, held a meeting last Tuesday with the Argentine president, Alberto Fernández, and the Minister of Economy, Martín Guzmán, in which the president ratified his commitment “to make your economic program a success.”
To which is also added a negotiation of new conditions with the Paris Club to settle the country’s debt with said group of creditors.
Likewise, the Executive and the IMF agreed, among other issues, to offer returns in local currency that do not yield against inflation, and aimed at reinforcing the disincentives of dollarization and thus avoiding pressure from the external front.
The head of the Central Bank, Miguel Pesce, avoided in this regard that “we are going to continue measuring the possibility of raising the interest rate or maintaining it”, in correspondence with the behavior of internal market prices. By the way, last week said financial entity announced a rise in the reference rate from 42.5 to 44.5 percent.
This increase is worrying, added to the fact that social conditions and lack of access to international credit prevent solving the inflation problem with an immediate shock policy.
To mitigate it, the official pointed out economic growth and greater production as the only way out, fundamentally from the so-called mega-companies.
“We need companies that produce mass consumer goods to respond to the pulls in aggregate demand as a result of parity and public policies with more production and not with price increases,” Pesce said.
“I think that once these two obstacles are removed, Argentina today has a possible growth horizon. Especially since exports that were in the order of 60,000 million in the last five years, last year gave 78,000 million and this year we hope they will reach more of 80,000 million”, detailed the head of the Central Bank.