MercoPress. South Atlantic News Agency

Argentina's economy minister scheduled to meet IMF officials

Guzman will meet with Julie Kozack, the IMF deputy director for the Western Hemisphere, and Luis Cubeddu, head of the IMF's mission in Argentina

Argentine Economy Minister Martin Guzman will meet with International Monetary Fund officials in New York on Tuesday, an IMF spokesman said on Monday, as the government continues talks with its biggest creditor ahead of a massive debt restructuring.

Guzman will meet with Julie Kozack, the IMF deputy director for the Western Hemisphere, and Luis Cubeddu, head of the IMF's mission in Argentina, the spokesman said.

Argentina is preparing to renegotiate its debt with its creditors, including the IMF, which has a US$ 57 billion financing program with the South American nation. The new center-left administration of President Alberto Fernandez set a March 31 deadline to renegotiate Argentina's rampant public debt.

Earlier on Monday, Guzman attended a Council of the Americas event in New York.

Guzman, a young economist with close ties to influential U.S. economist Joseph Stiglitz, has been tapped by Fernandez to help lead the country's debt restructuring and negotiations with creditors for about US$ 100 billion in sovereign debt.

Guzman on Monday reiterated that Argentina wants to honor its debts, but needs to grow to pay and pointed out that the country belongs to the global financial system, and once it has overcome it will need foreign investment to keep growing.

However the minister also admitted that holders of a Buenos Aires province bond 2021, that had been asked to accept a defer of payment until May, had only received a 26% support from the bondholders. This contrasts with provincial governor Axel Kicillof who had been publicly saying that the province had received “significant support”. For such a deferment to happen a green light is needed from holders of 75% of the debt.