IMF funds for Ecuador, Argentina and a new request from Costa Rica

People walk past the National Congress, as the Senate debates the government’s deal with the International Monetary Fund (IMF) in Buenos Aires, Argentina March 17, 2022. REUTERS/Agustin Marcarian

June 24 (Reuters) – The executive board of the International Monetary Fund completed the first review of its $44 billion expanded financing facility for Argentina on Friday, its managing director said.

The approval allows the disbursement of approximately $4 billion.

Kristalina Georgieva said on Twitter that the approval marked the conclusion of a first step in the program to support the “ongoing economic recovery and strengthen stability” in the country.

A source familiar with the matter had previously confirmed the information to Reuters.

In a statement, the IMF said that despite shocks such as inflationary pressures and fiscal and reserve difficulties

accumulation targets, the Argentine authorities have achieved “all end-March 2022 quantitative targets and have made progress in implementing structural commitments under the program”.

He added that he was maintaining year-end program targets with some flexibility in quarterly trajectories to accommodate these shocks.

Also on Twitter, Argentine Economy Minister Martin Guzman said the country would continue to implement macroeconomic policies to strengthen growth with “job creation and stability”.

The IMF announced on June 8 that it had reached a staff-level agreement on an updated macroeconomic framework with the authorities in Argentina – the fund’s biggest debtor. He said at the time that “all quantitative program targets” for the first quarter of the year had been met.

Argentine authorities did not immediately respond to requests for comment.

On Tuesday, the Argentine government approved two payments to the IMF for some $2.75 billion.

Reporting by Jorgelina do Rosario in London; Additional reporting by Rodrigo Campos in New York and Nicolas Misculin in Buenos Aires; Written by Carolina Pulice; Editing by Leslie Adler, Matthew Lewis and Sandra Maler

The headquarters of the Central Bank of Costa Rica is pictured in San Jose, Costa Rica February 12, 2020. REUTERS/Juan Carlos Ulate

SAN JOSE, June 25 (Reuters) – Costa Rica has told the International Monetary Fund (IMF) it is seeking a loan of nearly $700 million to invest in infrastructure from a newly created fund, the country said. the Central Bank.

Costa Rican authorities have told the IMF that the country aims to be the first to obtain financing from the IMF’s Resilience and Sustainability Fund (RST), announced in April, the central bank told Reuters on Friday.

“The government is assessing the conditions and opportunities to access these resources for infrastructure works,” the bank said.

The IMF launched the financing facility with the aim of helping low- and middle-income countries address long-term challenges such as climate change and pandemics.

The IMF said it plans to start lending under the program by October.

Costa Rica struck a $1.78 billion deal with the IMF in early 2021 to help the Central American country shore up its finances after years of mounting debt. The IMF has so far disbursed nearly $570 million.

President Rodrigo Chaves, who took office in May when Costa Rica’s debt was equivalent to 66.5% of gross domestic product (GDP), said he planned to strengthen the IMF program, but did not no details provided.

IMF staff met Chaves for the first time this month and warned of a likely slowdown in Costa Rica’s economy this year amid external pressures, including the ongoing pandemic and rising l ‘inflation.

Reporting by Alvaro Murillo Editing by Chizu Nomiyama

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