MercoPress. South Atlantic News Agency

Lavagna praises Ms. Anne Krueger.

Argentine Economy Minister Roberto Lavagna praised the “intellectual honesty” of International Monetary Fund, IMF, First Deputy Managing Director Anne Krueger, who changed her opinion regarding the evolution of the Argentine economy.

In an interview with an Argentine financial newspaper Mr. Lavagna said his successive visits to IMF's main offices have "helped to change perceptions at the moment of assessing" a country whose performance was better than expected.

After twelve months of exhausting discussions Argentina last January reached a transitory agreement with the IMF that helped the country reschedule debts with all multilateral credit organizations to the tune of over 16 billion US dollars.

Ms. Anne Krueger who during those twelve months was one of the hardest nuts to break, two weeks ago recognized that she and "all the world" were surprised at the recovery and growth of the Argentine economy after four long years of recession.

However the number 2 official in the IMF insisted Argentina must still elaborate a "sustainable" economic plan, address pending reforms, restructure the banking system and renegotiate the public debt on which the country defaulted in December 2001.

Mr. Lavagna who will continuing as Economy Minister in the newly elected president Nestor Kirchner administration that takes office Sunday May 25 was emphatic in pointing out the "great intellectual honesty" of Ms. Krueger.

Mr. Lavagna also promised "continuity" in the economic recovery and underlined that the IMF has "accepted" that Argentina's GDP this year will be growing 4%, "when just six months ago they were only admitting 1,5% and we were talking of 3%".

"They wouldn't accept this figure but now they've adjusted their numbers", said Mr. Lavagna adding that he is confident that the economy will expand 4,5%, and "some private analysts are even talking of 5 or 5,5%".

Mr. Lavagna also revealed a significant improvement in the finances of the provinces, one of the federal government's headaches: from a 6 billion pesos deficit in 2001, to below one billion pesos in 2003. "Besides the overall primary surplus reached 420 million pesos in the first quarter of 2003, well above our expectations".

The IMF transitory agreement with Argentina expires next August, which means the incoming administration has two months to work out a long term, (hopefully) three years understanding.