MercoPress. South Atlantic News Agency

Argentina demands respect for its economic program

Economy minister Roberto Lavagna said Friday in Washington that Argentina is ready to work with multilateral credit organizations as long as the current economic program which is being implemented is respected.

"Argentina has clearly stated that we are ready to work seriously with international organizations, which implies respect for the Argentine economic program", indicated Mr. Lavagna who this weekend will be participating in the World Bank and International Monetary Fund annual general assemblies.

"It's not a question of speeches, but rather sitting down to work", added Mr. Lavagna in response to IMF Managing Director Rodrigo Rato' statements on Thursday who said that reaching an agreement "will depend on the Argentine government willingness and if they think drafting a financial program with us is necessary".

IMF Western Hemisphere Manager Anoop Singh said that it's the Argentine government who will decide when to implement the reforms program that will be part of the new agreement still to be discussed.

"We expect Argentina will draft a reforms program, as it has done, and I'm sure that they will continue doing so in the coming months", said Singh insisting that "it's the Argentine government who must decide when the reforms, and only the Argentine government, not the IMF". Both IMF and Argentina are well aware that the economy's growth "must continue to be solid and sustainable in the mid term", emphasized Mr. Singh.

Argentina is expected to begin negotiations to refinance 18,4 billion US dollars which is must reimburse in the coming two years, next November.

The country's payments calendar shows that 8,177 Billion US dollars must be returned in 2006 and 10,263 billion in 2007.

However serious formal discussions will have to wait for the October 24 mid term Congressional elections in Argentina when half the Lower House and a third of the Senate will be renewed.

Repayments to IMF total 1,989 billion US dollars in 2006 and 4,525 billion in 2007, but Argentina is betting on a partial roll over of those sums, which "will have less conditions" and "we are more interested in attracting investment banks to ensure a sustained flow of investment to Argentina", said a source close to Mr. Lavagna. "Besides, in spite of an increase in government outlays, the primary budget surplus remains high an above the target originally agrees".