The International Monetary Fund plans to engage in discussions regarding the initial review of Argentina’s US$20-billion programme during an informal meeting between its staff and executive board on Tuesday, as reported by a source with knowledge of the situation.
The meeting is anticipated to occur in Washington on Tuesday morning, according to an individual who requested anonymity due to the sensitive nature of the information being discussed. This represents a significant advancement towards achieving a staff-level agreement for the initial review of the nation’s ongoing program, marking Argentina’s third such endeavor since 2018.
Subject to staff agreement and board approval, Argentina is set to receive a US$2-billion disbursement from the IMF following the initial review. The nation obtained an immediate allocation of US$12 billion in April, coinciding with the approval of the 48-month loan. The press office of the IMF refrained from providing a comment, and Argentina’s Economy Ministry did not promptly address a request for commentary.
In early July, officials from Argentina engaged in technical discussions in Washington regarding the initial assessment of the program. Previously, a staff mission from the Fund conducted a visit to Buenos Aires last month. In a casual gathering, staff from the IMF typically provide the board of directors with an update regarding the status of discussions with government representatives concerning a new programme or the assessment of an existing loan. Typically, the next phase involves the announcement that the staff of the IMF and the respective country have come to an agreement, which will subsequently be formally presented to the board for approval.
Estimates from analysts in Buenos Aires indicate that Argentina failed to achieve the June target set forth in the Fund’s programme concerning the accumulation of net reserves. Economy Minister Luis Caputo has pledged to elevate the Central Bank’s reserves beyond the established target by the conclusion of July, as the Treasury engages in dollar purchases from the local market to bolster these reserves.