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ARGENTINA: IMF Agreement Expected Soon, February Tax Revenue Due

ARGENTINA
  • The local market reopens today after the carnival holiday, with February tax revenue figures due for release later, ahead of January industrial production and construction activity on Friday. Focus, however, remains on the discussions with the IMF over a new loan programme, with President Milei recently suggesting that an agreement would be reached soon. Last weekend, Milei said that he will request that Congress supports the government in a new agreement with the IMF in the coming days.
  • Last Friday, the IMF’s Gita Gopinath commented that she’d had excellent discussions with Economy Minister Luis Caputo and BCRA President Bausili, saying that they had made very good progress on negotiations towards a new Fund-supported programme to further enhance stability and growth in Argentina.
  • UBS believes that the IMF will lend the government as much as $20bn, including $8bn in new funds. They say that this would cover both principal and interest payments that the government owes to the IMF over the remainder of Milei’s term. They believe that at least 30% of this would be made available to the government this year.
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  • The local market reopens today after the carnival holiday, with February tax revenue figures due for release later, ahead of January industrial production and construction activity on Friday. Focus, however, remains on the discussions with the IMF over a new loan programme, with President Milei recently suggesting that an agreement would be reached soon. Last weekend, Milei said that he will request that Congress supports the government in a new agreement with the IMF in the coming days.
  • Last Friday, the IMF’s Gita Gopinath commented that she’d had excellent discussions with Economy Minister Luis Caputo and BCRA President Bausili, saying that they had made very good progress on negotiations towards a new Fund-supported programme to further enhance stability and growth in Argentina.
  • UBS believes that the IMF will lend the government as much as $20bn, including $8bn in new funds. They say that this would cover both principal and interest payments that the government owes to the IMF over the remainder of Milei’s term. They believe that at least 30% of this would be made available to the government this year.