Argentina will pay a debt maturity with the International Monetary Fund (IMF) thanks to the granting of a special drawing rights loan granted by Qatar for the equivalent of 770 million dollars, official sources announced this Friday.
(In addition: Argentina pays the maturity to the IMF with yuan and CAF bridge loan)
“For the first time in history, Qatar carries out a credit operation with Argentina. Qatar lends the special drawing rights (DEGS) so that Argentina pays the IMF without touching its reserves”the sources reported.
(Keep reading: IMF and Argentina reach technical agreement for another debt refinancing review)
According to a decree signed by the Argentine president, Alberto Fernández, and published this Friday in the Official Gazette, the facilities agreement sealed with Qatar establishes a loan for Argentina for 580 million DEGS (book value for international reserves applied by the IMF)which is equivalent to about 770 million dollars, at the conversion rate of this Friday set by the international organization.
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The agreement was negotiated by the Argentine Economy Minister and presidential candidate, Sergio Massa, with the Qatari economic team “in the most absolute secrecy,” according to Argentine government sources.
Argentina had to face this Friday an interest maturity with the IMF for some 750 million dollars.
Already paid on Monday, he had to use yuan and funds from a CAF-Development Bank of Latin America loan to face a maturity with the Fund for 2,700 million dollars.
The South American country, which in March 2022 signed an agreement with the IMF to refinance debts for some 45,000 million dollars, suffers severe macroeconomic imbalances, including a meager level of monetary reserves, fiscal deficit and very high inflation.
Argentina’s international reserves include, in addition to dollars, a portion in gold and also other instruments such as the yuan from the swap with China.
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In Argentina, an exchange control system has been in force since 2019 and several exchange rates work in parallel to the official one.
Historically, Argentines bet on the dollar to prevent the depreciation of their currency, the peso, and this behavior is exacerbated in the vicinity of an electoral process.
On August 13, the primary elections will be held to define the candidates who will compete in the presidential elections on October 22, when half of the Chamber of Deputies and a third of the Senate are also renewed.
INTERNATIONAL WRITING
*With information from EFE and AFP
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