MercoPress. South Atlantic News Agency

IMF “not willing” to reschedule Argentina's repayments.

The IMF is not willing to extend the repayments timetable of the current stand by agreement with Argentina as was requested by Argentine Economy Minister Roberto Lavagna during his latest visit to Washington.

Pier Carlo Padoan member of the IMF Executive Board speaking in Italy said "a new restructuring of Argentina's repayments with the IMF is not feasible".

Apparently Mr. Lavagna in Washington argued that a long term debt rescheduling with the IMF could liberate resources to improve the restructuring conditions for private creditors.

"Negotiations with the IMF and private creditors function at different levels", insisted Mr. Padoan.

Argentina has proposed private creditors holders of sovereign bonds a 75% face value cut which was rejected as unacceptable.

Last week a group of several associations of Italian creditors, holders of defaulted Argentine bonds warned that solicitors were looking into filing claims against the IMF as an extension of the dispute with the Argentine government.

"It's not written anywhere that when a country becomes bankrupt the IMF is in the privileged position of being paid firstly, meaning the rest of creditors belong to a B category", pointed out the Italian Consumers association of Argentine bondholders.

Argentina in December 2001, January 2002 defaulted on 88 billion US dollars debt, of which 14 billion correspond to Italian bondholders.

Argentine President Nestor Kirchner addressing this Monday March 1st Congress for the official inauguration of the 2004 legislature said that Argentina can't "by miracle" increase resources to better its proposal to private creditors and insisted he will not pay "with the suffering and hunger of the people".

"The mass of (financial) resources is the existent and it can't be increased by miracle", said Mr. Kirchner adding that international multilateral organizations must honour "what was agreed", because the "permanent change of rules and pressure do not lead to a good faith relation".

The IMF Executive Board this week begins the consideration of the second review of the three years standing agreement with Argentina which has been under strong pressure, and growing demands, to improve the proposal to private creditors.

Buenos Aires police estimate that 15,000 people marched on Congress with Argentine flags and drums to express support for President Kirchner's speech before the National Assembly