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Argentina’s powerful vice-president Cristina Fernández de Kirchner and her allies in the leftwing administration want to postpone a crucial US$ 44bn debt deal with the IMF until the pandemic has eased, officials said, avoiding painful spending cuts before October’s midterm elections.
While finance minister Martín Guzmán recently said that the government wanted to wrap up negotiations on a new IMF agreement by May — later than the originally touted March — powerful voices in the Peronist government of President Alberto Fernández want an even longer delay.
Argentina, the IMF’s biggest debtor, is mired in a deep recession and is low on foreign currency reserves. A 2018 loan agreement ran into trouble months after it was first signed and the South American grain and beef exporter is vulnerable to another financial market crisis if investors lose confidence.
en.mercopress.com
No matter which way they decide to move there will be painful cuts. The IMF has a way of doing this.
While finance minister Martín Guzmán recently said that the government wanted to wrap up negotiations on a new IMF agreement by May — later than the originally touted March — powerful voices in the Peronist government of President Alberto Fernández want an even longer delay.
Argentina, the IMF’s biggest debtor, is mired in a deep recession and is low on foreign currency reserves. A 2018 loan agreement ran into trouble months after it was first signed and the South American grain and beef exporter is vulnerable to another financial market crisis if investors lose confidence.
Argentina's October midterm elections condition IMF debt deal
Argentina’s powerful vice-president Cristina Fernández de Kirchner and her allies in the leftwing administration want to postpone a crucial US$ 44bn debt deal with the IMF until the pandemic has eased, officials said, avoiding painful spending cuts before October’s midterm elections.
No matter which way they decide to move there will be painful cuts. The IMF has a way of doing this.
