August 9, 2020

The president-elect of Argentina reveals that he advances in the dialogue with the creditors

The president-elect of Argentina, the Peronist Alberto Fernández, revealed on Sunday that his collaborators move forward in talks with creditors of the Argentine public debt with a view to starting a negotiation to agree on new payment terms.

"We are moving forward and we are talking much faster than the media think," Fernández said in radio statements, after the growing uncertainty in the markets about how the future government will face the debt problem .

During the election campaign that led him to a triumph in the presidential elections last October 27, Fernández said he would seek to negotiate longer payment terms with both private creditors and the International Monetary Fund (IMF), without taking away capital or interest. .

However, many analysts believe that some reduction will be necessary for Argentina to meet its commitments, a doubt that Fernández's advisors have not yet cleared.

"Nor do we have to run, because finally this is a negotiation. When negotiating, a strategy is made to find the best opportunities and the best time to do things," Fernández told Radio 10, of Buenos Aires.

According to official data, towards the end of September the Argentine debt amounted to 315,000 million dollars, of which 126,000 million were held by private creditors and 75,000 million were with international organizations.

With the IMF Argentina in 2018 sealed a financial aid agreement for 56.3 billion dollars, of which some 44 billion dollars have already been disbursed.

The rest is debt between Argentine public sector entities, easier to manage.

The problem is that in 2020 Argentina must face debts with private creditors and multilateral organizations for about 39.3 billion dollars, a sum that becomes unpayable without possibilities of refinancing through voluntary credit markets or new loans by international organizations .

"It is a complex negotiation. But everyone already knows what our logic is: our logic is to pay, but not to pay by postponing the development of Argentina," said Fernández, who will assume the Presidency on December 10.

The elected president, who has not yet revealed who will be his Minister of Economy, insisted that "there is no possibility of paying if Argentina", sunk in recession since 2018, "does not grow again."

"I do not need more money borrowed from anyone, or the Fund or anyone. I need to be allowed to grow in order to pay. And not be required to pay at the expense of those who have less because the truth is that the adjustment in Argentina no longer there is where to do it, "he said.

However, he said he is "calm" to face the negotiation process and "try to achieve a result that serves Argentina and also serves the creditors."

"The creditors lent money (money) to a government that told them that it was going to be repaid for the most part in the four years after they took the debt and that was incomprehensible," he said.

. (tagsToTranslate) president (t) elected (t) Argentina (t) dialogue (t) creditors

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