MercoPress. South Atlantic News Agency

Argentina: IMF's three points

The controversial International Monetary Fund, IMF, Deputy Director General Ann Krueger presented Argentina a three points recipe which she believes will help overcome the country's current financial crisis and free much needed fresh funds.

Mrs. Krueger made her presentation this week in the State Department before 300 businessmen and political leaders gathered for the annual assembly of the Council of the Americas.

However before making her presentation, Mrs. Krueger that has been severely criticized for her toughness towards Argentina made it quiet clear that the IMF is interested in helping the beleaguered country.

"There should be no doubt about the commitment of the international community to help Argentina emerge from the current crisis; but this support must be oriented towards a program sufficiently strong and believable so as to recover the trust of the Argentine people", stressed Mrs. Krueger.

The three points recipe is as follows:"Amendments to the insolvency legislation and rejection of the economic anti subversive bill so as to provide a legal framework compatible with international standards. This is essential to have access to credit and restoring confidence to local and foreign investors". "Solving the fiscal weakness that has been at the core of Argentine difficulties and restoring a consolidated budget proposal sustainable in the mid term".

Mrs. Krueger added that the IMF acknowledges there are limits to the adjustment in the midst of a deep contraction of the economy, but "we will insist that the fiscal reform include Argentina's provinces". Most provinces print their own money to keep their local economies going, be it artificially.

Argentina has been cut off from all international credit and loans since last December when the country defaulted and almost severed relations with the IMF.

Enrique Iglesias, Director General of the Interamerican Development Bank and present at the meeting said that "we're part of the system and until the IMF and the US Treasury Department don't lift the current restrictions we can't lend a penny to Argentina".Argentina and the IMF have been involved in ongoing discussions since last January.