LatinNews Daily - 14 October 2024

*Argentina’s finance secretary, Pablo Quirno, has stated that the country will save US$3.2bn due to a decision by the International Monetary Fund (IMF) to reduce its charges and surcharges. Quirno stated that the IMF’s review of charges and surcharges was brought about following the “exhaustive work” of Argentina’s economy ministry since the start of President Javier Milei’s government, which raised the issue at the G20 and the IMF’s Monetary and Financial Committee (IMFC) following meetings with G7 finance ministers and countries affected by the policy. The IMF has reduced its basic charge to the special drawing rights (SDRs) interest rate, which is market determined, plus 60 basis points (down from 100 basis points); lowered the time-based surcharge rate from 100 basis points to 75; and increased the threshold level above which surcharges are charged from 187.50% of the fee to 300%. Quirno stated that these changes, which will be effective from 1 November, translate into savings of approximately US$3.2bn for Argentina, with a 29.1% reduction in the payment of fees and surcharges for the entire current loan. He stated that the savings will be felt especially during the next three fiscal years, where the reduction will be approximately US$1.1bn.