MercoPress. South Atlantic News Agency

IMF announces dispatch of mission to Argentina

An IMF mission will leave for Argentina Thursday to resume negotiations with the government on a transition accord, the fund announced.

The announcement came after a meeting of the board of directors of the International Monetary Fund (IMF) to discuss the evolution of the situation in Argentina and improvements during the second half of 2002.

"Directors recognized the greater economic and financial stability seen during the second half of 2002," said an IMF press release after the meeting.

"Argentina should focus on achieving a clear political consensus in favor of reforms, building a sound fiscal framework, restoring confidence in the banking sector, increasing trade openness, and restructuring debt," the directors said.

They also expressed their hope for an "early finalization of a short-term economic program that would be a step toward the more comprehensive program Argentina needs to restore growth and place the economy on a sustainable path." "A Fund mission will travel to Buenos Aires ... to pursue discussions with the authorities on their request for a transitional program with the IMF," the release said.

The mission, which will last approximately a week, will be headed by John Dodsworth, a deputy director of the Western Hemisphere Department.

The mission reflects the support of most Fund directors for a transitory accord with the country, given that a broader agreement will only be possible following the April 27 Argentine presidential elections.

In November, Argentina defaulted on a $976 million debt payment to the World Bank and in January, it must pay the Fund more than $1 billion.

The Argentine government has been hoping for an agreement with the IMF, not to secure fresh funds, but to reschedule its millions of dollars in debts with international lending institutions.