Massa met with the head of the IMF and received the green light for the fourth review of the agreement

Minister of Economy, Sergio Massahe met with the principal these hours International Monetary Fund (IMF), Kristalina Georgievawhich progressed as economic management achieved good results of the goals of the agreementwhich corresponds to the fourth revision of the program.

“Very good discussion with Sergio Massa on the sidelines of #G20India on new challenges facing EMs [Mercados Emergentes] and Argentina. Good progress was made on the fourth revision of the program and we hope to publish its conclusion soon,” Georgieva said this morning via a post on her Twitter.

The meeting was held within G20 Summit in Bangalore, India; in which finance and finance ministers of major economies participate. In addition, the sources of Economy reported that the meeting was also attended by the Deputy Director of the Fund, Gita Gopinathand Secretary for International Economic and Financial Affairs Palacio de Hacienda and Head of INDEC, Marco Lavagna.

A few days ago, during the presentation of the second day of the G20 summit of finance ministers and central bank governors, the minister questioned the IMF for not reviewing its policy of additional feesfor the understanding that this is a “regressive” decision, because it falls on the countries with the greatest financial needs, such as Argentina.

According to Massa, this measure is also “pro-cyclical, as it makes economic recovery and repayment capacity even more difficult, and opaque, as very few countries know that they will have to pay surcharges”.

The keys of the last days

A few days before the meeting between Massa and Georgieva, a delegation led by the Deputy Minister of Economy, Gabriel Rubinsteinpresented the latest figures on the progress of the financial economic plan, also requesting approval for the goals of the last quarter of 2022.

If that approval is granted, Argentina will be able to obtain a disbursement of about 5.4 billion USD in March.

In parallel, in recent days, the possibility of economic management ask for a waiver or direct renegotiation of various agreement itemssince the part of the reserve accumulation is that which arises with the greatest urgency for its change.

Very good discussion with @SergioMassa on the margins #G20India about the new challenges facing the European Championships and Argentina. Good progress has been made on the fourth review of the %uD83C%uDDE6%uD83C%uDDF7 program and we hope to announce its conclusion soon. pic.twitter.com/rJoKToKY1i

— Kristalina Georgieva (@KGeorgieva) February 25, 2023

The impact of the drought on productive agricultural yields and the fallout from the war between Russia and Ukraine are two factors that Economy accuses of hurting the numbers in the next revisions.

They even published a report from the portfolio one year after the Russian invasion of Ukrainian territory, in which they assessed that the war caused a deficit of 4,940 million USD in Argentina’s trade balancedue to rising international prices.

In addition, it was observed a increase in the value of fuel imports to US$3.757 million, against US$1.999 million projected at pre-war prices. As for the fiscal impact of paying for the most expensive fuels, it was estimated that transfers for subsidies this year will amount to 1,799,286 million dollars.