By Bernardo Caram and Nicolás Misculin
BRASILIA/BUENOS AIRES, May 4 (Reuters) - Argentina is
seeking new easing of targets in its $44 billion deal with the
International Monetary Fund and faster payouts, and is pushing
to get key IMF members the United States and Brazil to support
it, government officials said.
The country is expected to return to talks with the IMF on
Thursday over amending the deal, which has come under strain
amid a historic drought that has battered the country's key cash
crops soy and corn, a senior economy ministry official said.
Three government sources, including the economy ministry
official, confirmed that the country was seeking to accelerate
disbursements, with some $10.64 billion of funds scheduled to be
given currently between June and December this year.
The talks, after the IMF eased program targets already in
early April, come as Argentina's foreign currency reserves hit a
seven-year low with the drought dragging down grains exports,
the main source of dollars.
That is threatening the country's ability to meet future
debt obligations and make payments on trade. It has ramped up
pressure on Argentina and the IMF to revamp the debt program,
the largest extended to any country worldwide.
The ministry official said backing from the United States
and Brazil was key for the IMF talks, and was "positive" about
it given the countries' broader support for Argentina's economy.
The U.S. Treasury and White House did not comment on record
about potential support for Argentina's talks with the IMF.
Brazil's presidency did not respond to a request for comment.
An IMF spokesperson said that the lender was working
"very closely" with the Argentine authorities to strengthen the
program in light of the impact of the severe drought.
"Discussions in the context of the next review are
ongoing and continue in a constructive manner," the spokesperson
said.
U.S. support is important because it is the IMF's largest
stakeholder. Brazil meanwhile is Argentina's main trade partner.
Argentina would need to reach a technical deal with IMF staff
before any agreement went to the board for approval.
Argentina has battled major debt and currency crises for
years and its bonds trade in distressed territory. Its current
IMF loan deal replaced a failed $57 billion program from 2018.
(Reporting by Bernardo Caram in Brasilia, Nicolas Misculin and
Jorge Otaola in Buenos Aires; Additional reporting by Andrea
Shalal in Washington; Writing by Rodrigo Campos; Editing by Adam
Jourdan and Andrea Ricci)
