MercoPress. South Atlantic News Agency

IMF interested in resuming dialogue with Argentina

The International Monetary Fund is interested in resuming dialogue with Argentina, a fund spokesman said on Thursday, indicating ties may be thawing between Buenos Aires and the Washington-based multilateral organization.

"In the context of the global crisis we are working closely with all our members and are interested in deepening our dialogue with Argentina," IMF spokesman David Hawley told a news briefing. Hawley said the IMF would conduct an economic assessment of Argentina's economy in the "months ahead." However Hawley's stance contrasts with words from former president Nestor Kirchner who during a political rally this week said Argentina would not return to the IMF for funds "even if we are given the money free". "If the multilateral lending organizations change, could be. But in the current circumstances, they can keep the money, because they've already done too much damage to Argentina", he insisted. The multilateral lender has not done a routine annual review of Argentina since 2006, when the government of then President Nestor Kirchner used central bank reserves to pay off its IMF debt to gain greater independence in policy-making. Argentina blames IMF for helping set the stage for the economic meltdown of 2001/02, which prompted a massive debt default and devaluation of the Peso. Argentina, the third largest economy in South America has enjoyed strong growth in recent years but gross domestic product is expected to stagnate in 2009 as investment and commodity prices fall victim to the world economic slowdown.