The CAF loan will serve as a “bridge” to pay the IMF, indicated the multilateral organization

2023-07-29 18:02:14

He Development Bank of Latin America and the Caribbean (CAF) reported that the 1,000 million dollar credit for Argentina, approved last night at an extraordinary meeting of the Board, will serve as “bridge financing” so that the country can meet the International Monetary Fund (IMF) maturities.

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The credit, considered as a “short-term deposit”, will be disbursed to the Central Bank (BCRA) to support Argentina “to cover the payment of the debt service that it must make in the coming days to the IMF”, indicated the multilateral organization based in Caracas.

The CAF financing will make it possible to cover part of the maturities – of more than US$ 3,000 million – at the end of this month and the beginning of August.

“The approved operation will serve as bridge financing so that Argentina can continue with the implementation of the Extended Facilities Agreement agreed with the IMF for the benefit of its fiscal, monetary and exchange policies, as well as in favor of the diversification and execution of the debt strategy. public,” the statement added.

CAF explained that, in the extraordinary virtual meeting of the Board of Directors, in addition to analyzing the operation, they “reflected on the possibility that Latin America and the Caribbean, through CAF, can react quickly and effectively, with a sense of urgency and spirit of solidarity and trust, to the need of a shareholder country”.

Last month the Minister of Economy, Sergio Massaannounced that Argentina will make an additional subscription of shares in the organization, which will allow increasing net financing for the country by 2032 of the order of 8% per year.

The CAF pointed out that the approval of the loan to the country is “a demonstration” of how the organization “has considerable tools and financial and governance advantages, to be a relevant and timely player in global decisions that involve Latin America and the Caribbean.” ”.

CRM with information from the Télam agency