Argentina is unable to repay its US$45-billion debt with the International Monetary Fund, Vice-President Cristina Fernández de Kirchner said Wednesday, diminishing the possibility of an agreement with the country’s largest creditor.
“We can’t pay because we don’t have the money to pay,” the former president said at an event in Buenos Aires, adding that the terms and conditions are “unacceptable.”
Fernández de Kirchner’s comments come after a meeting between Economy Minister Martín Guzmán and IMF Managing Director Kristalina Georgieva in Washington on Tuesday that what was described by both sides as a “very good meeting.”
The hardline stance from Fernández de Kirchner, who battled with creditors during her eight years in office from 2007 to 2015, may help bury the already diminished prospects for a deal to get done before key midterm elections in October.
Argentina’s bonds due in 2030 slid 0.8 cent on the dollar to 34 cents with yields rising 26 basis points to 12.1 percent after Fernández de Kirchner’s comments. Argentina restructured its debt with bondholders last year and is still trying to reschedule payments with the Washington-based lender.
An IMF spokesperson declined to comment on Fernández de Kirchner’s remarks.
In the speech, Fernández de Kirchner was flanked by Axel Kicillof, the governor of Buenos Aires Province and her son Máximo who is a lawmaker. She called on the opposition to help seek better terms from the fund since they are responsible for taking on the debt under former president Mauricio Macri.
by Juan Pablo Spinetto, Bloomberg