Conversations with the Government of Argentina are going well, according to the IMF

The talks between the International Monetary Fund (IMF) and the Government of Argentina to analyze the situation of that country's debt and explore a possible new agreement "are going well" and will continue in the next few days, although there is still no resumption date, The credit agency reported.

IMF spokesman Gerry Rice said Thursday at his weekly press conference that Argentine Economy Minister Martin Guzman met last Monday at the agency's headquarters in Washington with representatives of the financial institution to review the situation of the South American country

"The talks are going well and we hope they continue in the next few days," the spokesman said.

This meeting with Guzmán and his team came after the meeting that the Argentine minister held last weekend in Riyadh with the IMF managing director, Kristalina Georgieva, taking advantage of the presence of both at the meeting of responsible for the economy of the G20, which It was held in Saudi Arabia.

After that meeting, Georgieva confirmed the "commitment" of the Argentine authorities to continue and strengthen contacts, including sending a mission to the South American country to submit it to the usual annual financial review of all its members, within the process that the IMF calls Article IV, with the ultimate goal of achieving a program supported by the agency in the future.

"There was a continuous dialogue between the Argentine authorities and the IMF," said Rice, who stressed the importance of the meeting between Georgieva and Guzman in Riyadh.

Last week, at the end of another mission of the Government of Buenos Aires to the headquarters of the agency, the IMF described the Argentine debt as "unsustainable" and indicated that "an" appreciable contribution of private creditors "will be required to resolve the situation and Restore your sustainability.

"The IMF staff now assesses that Argentina's debt is not sustainable," the Fund team said in a statement, headed by Julie Kozack, deputy director of the Western Hemisphere Department, and Luis Cubeddu, head of mission for Argentina, which He pointed out that the fiscal adjustment necessary to rebalance public accounts is not viable.

The IMF has supported the arguments of the new Argentine Government headed by President Alberto Fernández, who came to power at the end of last year, and has stressed that the country lacks the capacity to meet its debt unless it recovers minimal growth .

In 2018, during the previous Government of Mauricio Macri (2015-2019) and after unleashing an economic crisis that still continues, the IMF approved a financial rescue for Argentina of 56.3 billion dollars, of which it has so far sent 44,000, the largest of the history of the international financial institution.

According to the Ministry of Finance, at the end of December Argentina's gross debt amounted to 323,177 million dollars, of which some 194,000 million correspond to debt in public titles in the medium and long term, and whose renegotiation is now desired in the Argentine government.

The last projections of the Fund, three months ago, anticipate that the economic contraction in Argentina will be softened from 3.1% of the past year to 1.3% in 2020.


Source link