MercoPress. South Atlantic News Agency

Argentina rather “disgusted” with IMF

President Duhalde's administration reacted to the latest warning from the International Monetary Fund saying Argentina can work its way out of the current financial turmoil “with or without IMF's aid”, and expressed increasing “disgust” towards the multilateral institution attitude.

"There are some actions and opinions from the IMF that disgust even those most patient among us", said Interior Minister Jorge Maztkin during a press conference in Buenos Aires when he was asked about the nine months ongoing, but fruitless, discussions with the IMF.

Mr. Maztkin also expressed President Duhalde's administration "disgust" regarding the recent warning by the IMF's Deputy Director Anne Kruegger that Argentina will suffer economic sanctions if it suspends its debt payments to multilateral financial organizations (such as the World Bank or IMF).

"The Argentine government is doing everything that is necessary, because with or without the IMF the country must act prudently in many areas, and is forced to do so", stressed Mr. Maztkin, adding that if these actions are useful for an international negotiation, "they are most welcome, since that is what we wish".

Mr. Maztkin also complained about the lack of "international solidarity", stressing that in nine months "we've received no support or help, but have paid international financial organizations 3,4 billion US dollars".

When presenting the IMF Annual Report 2002, Ms. Anne Krueger indicated that with Argentina a "transitory agreement for 2003" was in the making, which should become definitive when the newly elected government takes office. Ms. Kruegger added that Argentina has yet to solve "difficult questions" regarding monetary and financial policies, insinuating the country should appeal to its international resources to pay back World Bank and IDB loans.

IMF has repeatedly postponed several Argentine loan repayments and another 800 million US dollars are due this coming October.

However Mr. Maztkin said that negotiations with the IMF have experienced a sufficiently important advance which makes Argentine authorities, "cautiously optimistic".

Mario Blejer a former IMF official and former Argentine Central Bank president remarked that "defaulting" with international multilateral organizations is "something very serious", but reducing the level of international reserves beyond a certain point is "extremely dangerous".

"Ms. Kruegger's warnings reflect a certain frustration in the IMF about its policies towards Argentina", explained Mr. Blejer.