President Alberto Fernandez said he has set a March 31 deadline to renegotiate Argentina’s rampant public debt and that a more “innovative” International Monetary Fund approves of the direction his government is taking.
Argentina is in talks with bondholders and other creditors to restructure about US$ 100 billion in debt, among them the IMF to whom it owes about US$ 44 billion.
“I think that from here to March 31 our trajectory is going to be very clear,” Fernandez said in an interview published on Sunday by the online news site El Cohete A La Luna. “That is the ceiling we have set, because there are significant maturities.
Fernandez, a moderate center-left Peronist, was elected in October with a mandate to end painful fiscal cuts implemented by his predecessor, Mauricio Macri.
Supporters of Fernandez expect more state spending to help families struggling with low growth, rising poverty and inflation over 50%. After assuming the presidency a little over a month ago, his government has announced plans to hike taxes on farm exports, as well as efforts to gain revenue from foreign assets and Argentine tourism dollars spent abroad.
The measures brought criticism from the opposition but, according to Fernandez, won the approval of the IMF.
“Everything we have proposed so far has been seen as essential starting points for setting the economy straight,” Fernandez said of his government’s initial talks with the global financial institution.
Fernandez said the new IMF managing director, Kristalina Georgieva, was aiming for a more “innovative” approach than her predecessor, Christine Lagarde.
“In the Lagarde era, they would not have taken all this sympathetically, they would have seen it in a critical way,” he said. “It’s a good start but I think there is a long way to go.”
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The typical Peronist story (populist and authoritarian) that can already be guessed: if the IMF accepts the current plan of more fiscal spending with asphyxiating tax increment, Alberto Fernandez will become a hero for having folded the hand of imperialism . If the IMF rejects it, and Argentina falls into default, Alberto Fernandez will be a hero for having defended the country's interests against imperialism.Jan 13th, 2020 - 01:43 pm 0
That is, basically, Alberto Fernandez has fate of national hero for the Peronist imaginary ...
Enrique, after the shame you should feel for the mistake you made in the article about the default of the Province of Buenos Aires I have to correct you again:Jan 14th, 2020 - 02:31 pm 0
The IMF suspended the agreement (and the last two transfers for a total of U$D 11,000 million) after the triumph of Alberto Fernandez in the PASO and his public accusation that the IMF is to blame for what happens to us.
With the economic chaos that has unleashed (in less thn a month) I see it difficult for the IMF to release the last part of the agreement.
You clearly do not understand anything about debts, bonds and what, is sadder, you understand nothing about the credit and honor of a country.
In other words, a chantapufi.Jan 16th, 2020 - 12:53 am 0