MercoPress. South Atlantic News Agency

Kirchners ready to allow IMF review of the Argentine economy

The deal should be sealed by Economy minister Amado Boudou next month in Turkey during the annual IMF assembly

Four years after Argentina froze relations with the International Monetary Fund under the administration of President Nestor Kirchner, the government of his wife Cristina Fernandez de Kirchner is willing to accept an IMF review of the Argentine economy, according to Economy minister Amado Boudou, quoted in the Buenos Aires press.

When specifically asked by La Nación whether Argentina “could accept” an IMF review of the country’s economy, Boudou said “exactly”.

According to La Nacion and government sources the review agreement with the IMF is “practically sealed”. However “we don’t have a calendar, but we are discussing a new relation with the IMF”, added Boudou.

Argentina in 2005 and with a year in advance cancelled all debts with the IMF (9.3 billion US dollars) and since 2006 has not allowed any review or auditing of the Argentine economy, standard procedure for all countries wishing to have access to international money markets.

The minister also pointed out that the idea is to look for “common ground” with the multinational organization, but Argentina “does not need IMF assistance” and the recent debt swap is part of the country’s strategy to address the matter.

“We’re not after loans or funds, so we have time and there’s no need to urge in the advancement of the understanding”, Boudou was quoted in London during the G-20 Finance ministers’ summit.

“Certainly” we’re not going to allow the IMF to review our economy “as in the past”, underlined Boudou. The Kirchner couple has repeatedly accused the IMF and its “recessive recipes” imposed on developing countries for much of Argentina’s financial and economic miseries.

“Argentina is a sovereign country and we don’t need any viceroy to come along and count our ribs”, said Boudou who pointed out that what matters is “that we are involved in a technical dialogue” among equals.

Re-establishing relations with the IMF is a first step for Argentina to return to international capital markets from where it has been excluded over the massive 2002 sovereign bonds default with some creditors holding on and refusing to accept a credit reduction restructured in 2005.

According to La Nacion and Clarin the final details for the IMF review system will be agreed in early October during the IMF annual assembly in Turkey. This would also help resume talks with the Paris Club to settle pending debts of 6.7 billion US dollars.

The Argentine economy is in need of fresh funds, since the current system of budget primary surpluses and positive trade results has been strained by the global recession and unorthodox handling of the country’s finances.