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The Executive Board of the International Monetary Fund, IMF, approved a disbursement of 5,400 million dollars for Argentina, after passing the fourth review of the debt agreement for 44,000 million.
The IMF announced that the decision “makes possible an immediate disbursement of 5.4 billion dollars” for Argentina, bringing the amount transferred to the country to 28.9 billion dollars, out of the total debt of 44 billion agreed in a 30-month financial aid program. .
The news also indicates that the agency definitively approved the fourth revision of the pact with Argentina to refinance the historic debt. On March 13, the IMF technical staff gave the green light to the fourth revision of the Extended Facilities Program that it signed a year ago with Argentina.
But the lender warned last week that “firmer action” is now needed in Argentina to safeguard stability in the face of “a challenging economic environment, particularly a deepening drought,” according to Julie Kozack, the IMF spokeswoman.
On a recent visit to the White House, Argentine President Alberto Fernández asked his US counterpart, Joe Biden, to continue supporting him in the negotiations with the IMF. “We hope that they continue to accompany us, as they have done up to now,” Fernández commented in statements to the press.
“Argentina is suffering from the worst drought since 1929 in its recent history. This has greatly complicated our economy and we are raising this new reality to credit agencies,” said Fernández, asking the US president for his support.
Argentina will cut its soybean exports by 7.3 billion dollars
The South American country is the world’s leading exporter of oil and soybean meal and the third of corn, which are the main sources of its foreign exchange earnings. However, crops have been affected by one of the worst droughts in the country’s history.
A report from the Rosario Stock Exchange indicates that Argentina’s soybean harvest would be 25 million tons this year, the lowest production in 23 years. “This would lead to exports falling by 30% compared to last year, and losing leadership in our main market,” the report cites.
For this year, as a result of the production cut, the Rosario Stock Exchange calculates that exports of soybeans and derivatives would be 17,568 million dollars, some 7,300 million less than in 2022.
“The flight of foreign currency is spreading day by day and this accentuates the concern about the weakness of net reserves,” said economist Gustavo Ber, who added that the government’s measures to boost grain exports could help “offer some respite ” to the trend.
A government official could promote a preferential exchange rate for farmers starting next month to encourage exports of soybeans, a key cash crop, and other products, all affected by the drought.
with EFE
