MercoPress. South Atlantic News Agency

Argentine Minister confident

Argentine Economy Minister Roberto Lavagna currently in Washington said he's confident on reaching an agreement with the International Monetary Fund, IMF, based on a new program, by the end of June.

"I must admit that the climate of the meetings in Washington has been very constructive, very positive, said Mr. Lavagna who then added, "we have concurred that the IMF and Argentina must have an agreement by the end of June, not one day later".

Mr. Lavagna also revealed that the IMF did not oppose more flexibility in the pre compromise of the Argentine provinces to drastically reduce their deficits, one of the stumbling blocks for a final understanding with the IMF.

During his visit to Washington Mr. Lavagna held several meetings with the Director General of the IMF, Mr. Horst Koehler, with Administrative Under Secretary Ms. Anne Krueger, a fierce critic of Argentina's economic programs and other hierarchy staff.

Mr. Lavagna stated that the IMF stands firmly in its original demands to reach an agreement, that is cutting expenditure at provincial level; derogation of the "economic subversion" bill and an end to the freeze on bank assets better known as the "corralito".

"The IMF does not oppose certain degree of flexibility regarding provincial government's expenditures, but demands the precise figures and commitments involved".

Although the provincial governments a few weeks ago signed an agreement with the President Duhalde administration basically accepting budget cuts, two of the most important provinces, Buenos Aires and Santa Fé were reliant to comply because of growing social unrest in certain counties, and actually demanded more funds for these extremely depressed areas.

"The IMF is totally committed in every possible way to help Argentina complete a strong viable program needed to stabilize the country's economy and set the foundations for a strong comeback and robust growth", said Mr. Kohehler. In a rare gesture, the IMF extended for another twelve months a 136 million US dollars credit Argentina was scheduled to reimburse this week.

In Buenos Aires back from the Madrid European Union-Latinamerica summit and two days visit to Italy, Minister of Foreign Affairs Carlos Ruckauff confirmed that all European leaders were unanimous in demanding Argentina reach an agreement with the IMF before any aid is forthcoming.

"To have access to fresh credit and to advance in trade talks, Europe was unanimous in demanding a previous understanding with the IMF", indicated Mr. Ruckauff.