Wednesday, August 12, 2020

ECONOMY | 04-06-2018 16:24

IMF: Talks with Argentina over loan are 'well advanced'

Reports emerge suggesting the government is planning an event for June 15 to announce a deal.

The International Monetary Fund (IMF) says negotiations with Argentina over a loan to strengthen its economic plans are “well advanced,” as reports emerge suggesting the government is already planning an event for June 15 to announce a deal.

“IMF staff and the Argentine authorities have been engaged in a very constructive and close dialogue in response to the authorities’ request for financial support for their economic plan,” said Alejandro Werner, the IMF’s director for the Western Hemisphere. “Talks are well advanced.”

Werner said the deal would strengthen the economy amid a troublesome global climate but didn’t put an exact figure on the amount of assistance requested.

“This will be a plan driven by the Argentine government’s priorities, with a particular focus on protecting the most vulnerable, and strengthening the local economy in light of the recent financial market turbulence,” he added.

President Mauricio Macri decided to request aid from the IMF last month in the midst of a currency crisis that saw the peso’s value drop by more than 20 percent against the dollar. 

The decision unsettled some citizens, many of whom link the IMF to painful memories of past economic and social crisis, which culminated in 2001 with a sovereign debt default.

According to reports in Cronista today, the government is planning to hold an event announcing confirmation of the loan to take place as early as June 15. It is anticipated that President Macri would announce further spending cuts at the event. 

Sources told the newspaper that the event will likely be held at the Case Rosada and that the news of the IMF loan will be “surrounded by other measures.” The sources said that the government will stress that the other measures will be chosen by the government, not the IMF.


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