E-COMMERCE

Argentina’s latest $ 40 billion deal with Argentina is likely to be concluded soon

  • Both sides have been negotiating for more than a year to rebuild a failed $ 57 billion facility agreed in 2018 under former Conservative President Mauricio Macri, which has failed to keep Argentina out of debt, currency and economic crises;
  • Some local media reported that the deal could take place this weekend, although officials have privately talked about the possibility, signaling that it is likely to happen later this month.

Argentinato deal with International Monetary Fund (IMF) refinance debt of more than $ 40 billion is nearing completion, despite protests in a South American country that has a long and difficult history with a global lender.

The parties have been negotiating for more than a year on the reconstruction of the failed $ 57 billion facility agreed in 2018 under the former Conservative president. Mauricio Macri, who could not hold back Argentina from slipping into debt, currency and economic crises.

A final deal that could cost $ 40-45 billion is likely in the coming weeks after an “understanding” with the IMF in late January. The agreement will still require the approval and support of the IMF Board of Directors ArgentinaCongress, where some lawmakers have openly opposed it.

Read also: Analysis: Argentina got what it wanted from the IMF

“We understand that it could be soon,” said a spokeswoman for the president Gabriela Ceruti told reporters when asked to send the agreement to Congress.

“We are going to reach the best agreement that will help us start looking for a solution to the biggest debt Argentina ever taken, as well as the largest ever issued by the IMF ”.

Tough negotiations have hit stocks and sovereign bonds that are in trouble even after a major debt restructuring of $ 110 billion with private creditors in 2020.

READ ALSO: After reaching a 15-year high, inflation in Latin America has strengthened, but the risks remain, the IMF said

Not there yet

Some local media reported that the deal could take place this weekend, although officials have privately talked about the possibility, signaling that it is likely to happen later this month.

“I understood that next Friday the agreement on the IC (letter of intent) will be concluded, and after March 1 it will be sent to Congress,” – said one of the officials.

Another official who knows about the talks said: “We continue to work. No news is expected over the weekend. Of course, it’s closer, and we have to be careful next week or next. “

Read also: Argentine Vice President Cristina Kirchner says IMF payments “cost more than COVID”

Both sides are looking to close the deal before the main payments under the 2018 agreement begin to arrive next month as the country struggles with depleted foreign exchange reserves and a drought that pulls on cereals, its key exports.

ArgentinaThe Central Bank of Russia raised the base interest rate to 42.5% on Thursday, the sharpest increase since 2019, seeking to curb annual inflation, which now stands at more than 50%, and move to positive real interest rates.

Eileen Romeroaccountant Rava Bursatsila local brokerage firm said investors hope the final deal is near, which could help strengthen markets.

“It would seem that the final signing with the IMF and the conclusion of negotiations on the agreement is approaching,” she said.

https://labsnews.com/en/news/economy/argentina-final-deal-soon/ Argentina’s latest $ 40 billion deal with Argentina is likely to be concluded soon

Back to top button