Argentine Government holds talks with IMF on restructuring crippling debt

The Argentine Government has made progress in talks with the International Monetary Fund (IMF) on restructuring the country’s crippling debt, according to the economy ministry.

 

The Argentine Economy Minister, Martin Guzman, met an IMF delegation led by Julie Kozack, Deputy Director of the Western Hemisphere Department, and Luis Cubeddu, mission chief for Argentina during last week’s Group of 20 summit in Venice, Italy.

 

“The technical teams’ meetings provided progress and understanding on key issues of the government’s economic programme.

 

“In particular, concrete progress was made in understanding regarding policies for the development of the domestic capital market, tax administration and the development of sectors that generate foreign exchange,”  the ministry said.

 

The IMF said in a statement that the meetings from July 8-12 were “productive,” adding that “discussions focused on policies to strengthen the recovery, economic stability, and job creation.”

 

“In particular, progress was made in identifying policy options to develop the domestic capital market, mobilize domestic revenue, and strengthen Argentina’s external resilience.

 

“The IMF team and the Argentine authorities will continue working together in the period ahead with a view to further deepening their understandings in these key areas. Our goal is to support Argentina as it durably addresses its economic and balance of payment challenges,” said the IMF.

 

Since coming to power in December 2019, Argentine President Mauricio Macri has looked to renegotiate several multi-billion dollar debts he describes as “unpayable” for a country of 45 million that has been in recession since mid-2018.

 

Argentina received $44 billion of a $57 billion loan from the IMF arranged under Fernandez’s predecessor, Mauricio Macri.

 

After taking office, Fernandez refused to accept the rest of the loan.

 

This year, Argentina has paid the IMF $600 million in interest with two more tranches of another $750 million due later this year.

 

It must also pay off $3.8 billion of the debt in two instalments before the end of the year.

 

Last year, Fernandez managed to renegotiate a separate $66 billion loan that was worth 54.8 cents on the dollar.

 

IMF/AFP