Despite this, he explained, always in wisdom. This is interpreted within the Council of Government, as the possibility of securely obtaining the support of the United States for the final reduction of the interest rate applied by the organism; which can drop from 4.05% against non-inclusive countries to 1.05%; Which will reduce the money that will be paid to the fund by about 8 billion dollars.
The United States will also help set up the Solidarity Fund with money from the remaining SDRs that developed countries will receive, money that can be redistributed in developing countries such as Argentina during 2022; With which Argentina can receive further funds from the $3.45 billion properties that will be received on August 23.
In the absence of luck, it is as an alternative to extending the repayment terms by more than 10 years, something the IMF is not willing to negotiate; And that it can only be structurally modified in the future. If this restriction is changed, Argentina will receive the benefits by including a special admission clause. But it can not be in the extended facilities that will be signed after the elections.
US support is essential to achieving improvements in current terms. Only with this country’s positive vote before the board of directors will Argentina get the changes it seeks. It happens that the United States has 17% of the vote on the IMF board, and changes in the usual structure require a large majority of 85% of the vote. Argentina considers that without this country, more than 60% of the positive vote will already be obtained, since the support of Germany, France, Spain, Italy and other European countries that would withdraw in favor of the country is theoretically guaranteed. Russia, China and the Arab countries (especially the Arab Gulf states that have a strong presence on the IMF board), will also, logically, join both Latin America and Africa.
It is also certain that in the coming weeks more consensus will be achieved with key countries such as Canada and the rest of the European Union, bringing the percentage closer to 70%. Thus, it would be necessary to obtain only 10% more for the basic level so that a proposal contrary to what is stipulated and dictated by the IMF can be approved.
Each sovereign state has a percentage of votes according to its gross domestic product; Reserves and direct contributions to the operation of the Washington-based agency. Any normal agreement (standby or extended facility) is approved with a minimum of 70%; But an 85% majority is needed for special plans or amendments to the Basic Charter. In the recent past, such a majority was necessary in situations such as the Greek crisis of 2010 and the Portuguese crisis of 2011.
The need to achieve this ratio was what played out against Argentina in 2001, when the Board of Directors rejected the last payment committed in the current agreement due to the United States’ refusal to agree to the proposal (on the direct recommendation of number two of those years, Ann Krueger); So did the approval of the 2003 charter when Nestor Kirchner negotiated directly with George W. Bush the quota plan outside the existing treaties.
In the current case, it is also necessary for the North American director to agree to the request, since his vote for or against (or abstain) will determine the fate of the Argentine proposal. In total, the board of directors is made up of 24 executive directors who represent different levels of authority within the body in percentage terms. The United States, Japan, Germany, France, and the United Kingdom may elect a director without the assistance of any other country. China, Saudi Arabia, and Russia, in effect, elect one director each; While the remaining 16 choose him according to the government blocs. Argentina, through local envoy Sergio Chodos, occupies the group with Bolivia, Chile, Peru, Paraguay and Uruguay.
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