Saturday, February 24

2022, a key year for negotiating with the IMF: what will be the next step for Martín Guzmán

The head of the Palacio de Hacienda pointed out that, at the meeting, he will give “details of what is happening in these negotiations, in this process of understanding by the international community of the operation of the Argentine economy.”

It will also give an account of what “this understanding process implies (by the international community) and the lack of understanding regarding the possibilities of reaching an agreement and at what times,” as detailed in dialogue with Télam. Guzmán trusted that he will inform the governors of “Argentina’s position” in the negotiations.

“What are we proposing to the IMF in terms of our economic policy schemes, what are we proposing from the fiscal point of view, what are we proposing from the monetary policy, the exchange policy, what are we proposing from the measures aimed at generating greater productivity in the sectors capable of generating foreign exchange and what we propose for the development of the capital market, in order to have a greater capacity to save in assets denominated in our currency and, therefore, more capacity to finance the investments that are needed to grow “, he listed .

“We are going to be involving all the governors of the country. Their presence is very important because this situation affects all the provinces and there will be an opportunity for the governors to also give their point of view, to comment on what they hear. and ask questions “, indicated Télam Guzmán.

In this sense, the minister remarked that “it will be a discussion that will have an important opening and will generate a debate that we consider necessary in our federal republic.”

Next Wednesday’s meeting will be held at the initiative of President Alberto Fernández, who commissioned Guzmán to make a presentation to the provincial leaders to provide them with details of the latest advances in negotiations with the multilateral organization.

“I have asked Martín (Guzmán) to make a presentation to all the governors, clearly explaining to them what is the situation of the debate that we have with the foreign debt, what are the proposals of Argentina, what are the problems that we are encountering, because I It seems that the issue of external debt and fundamentally with the IMF, is not a problem (only) of the government, but of the whole of Argentina, “said the head of state last Monday during the signing of the new Fiscal Consensus 2022 at Casa de Government.

In that sense, the head of state stated: “It is an issue that obviously once we resolve it will end in Congress, for Congress to approve it or not, but it matters a lot to me that the governors are aware of how Argentina is negotiating, what it is proposing. and what are the pitfalls we are encountering “.

Based on the anticipated by the President, the meeting between Guzmán and the provincial authorities is scheduled for 5:00 p.m.

The Ministry of Economy carried out four face-to-face missions throughout 2021 in which they informed IMF technicians about the reality that the Argentine economy is going through and, consequently, the need to sign a sustainable agreement over time.

Unlike what was signed by the Macrista administration (a stand-by agreement that basically responds to external financing needs, with short-term installments), the Palacio de Hacienda negotiates an Extended Facilities Program, which meets other characteristics in regarding terms and requirements.

Technically it would be an Expanded Facility of the IMF (SAF), characterized by participation in a program and longer repayment periods. In recent statements, President Fernández had insisted with the intention of reaching an agreement that “is one of development and not adjustment”, that “does not put us off” and “allows us to continue growing.”