MercoPress. South Atlantic News Agency

“Argentina is now helping herself”

“Argentina is now helping herself” and defending its interests said Argentine president Nestor Kirchner during a public ceremony this Wednesday in Buenos Aires.

Mr. Kirchner was actually responding to Spanish President Jose Aznar who earlier had warned there was "no salvage or horizon" if Argentina broke relations with the International Monetary Fund, IMF.

"I don't think there's any economic future for any country in the fringe of international financial systems", insisted Mr. Aznar addressing a group of Latinamerican journalists in Madrid.

"Spain has always been in favour of Argentina; now the only thing missing is for Argentina to be in favour of Argentina".

"It' one of the most fortunate statements I've heard lately", responded President Kirchner recalling that during the past decade Argentina was exposed to agreements with international financial organizations "which didn't favour herself".

"Everything the (Argentine) government is proposing is the maximum Argentina can humbly do helping herself and those she has commitments with", added Mr. Kirchner in direct reference to the dispute with defaulted sovereign bondholders and the IMF that is strongly lobbying for a better deal.

Argentina has offered bondholders a 75% face value cut which was rejected point blank by most creditors. The defaulted bonds amount to over 82 billion US dollars.

Next March IMF must approve the second review of the September stand by agreement reached with Argentina, for which Argentina has complied with most indicators. However, IMF is insisting on more flexible terms with creditors, but Argentina has insistently and publicly described the original proposal as "definitive and the last word".

If the IMF Board of Directors approves the second review Argentina will be entitled to a credit of 3,1 billion US dollars which will then be automatically used to repay a similar credit pending with the IMF.

Argentina has stated it will not use international reserves if the IMF review is not positive.

"It is true that for many years Argentina didn't help itself", and so is the fact that for many years "Argentine conductors turned their backs on the country, which is evident Spanish rulers proceeded differently from ours", indicated a compromising Mr. Kirchner.

However Argentine Minister of Interior, Anibal Fernandez was blunter speaking to a Buenos Aires radio station, "serious presidents from serious countries never warn the presidents of other countries".

Mrs. Kirchner, the First Lady wasn't very compromising either: "when we (Argentina) were most connected to the financial world, we went broke".

Mr. Aznar who in two months time will be leaving office has become the "unofficial" political spokesperson for the G-7 and IMF in the growing dispute of Argentina with its international defaulted creditors.

"IMF officials and overall officials from the most influential countries look favourably towards Argentina" regarding the second review, but I don't think there's "any salvage or horizon" possible if Argentine authorities and the IMF end in a rupture.