Argentina will allow IMF to inspect its accounts under Article IV consultations

Monday, February 24th 2020 - 07:59 UTC

Full article 4 comments

Argentina agreed to start consultations with the International Monetary Fund that could lead to a new financing program, days after the global lender said the country’s debt situation had become “unsustainable”. Read full article

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MarkWhelan
Yes Argentina will let the IMF look at it's (doctored?) books on the condition that the facts shown do not influence the IMF's willingness to loan Argentina an unlimited amount of money. The IMF must also agree that they will not try to restructure the Argentinian economy and will not complain when Argentina fails on each and every condition made for repayment.
Feb 24th, 2020 - 01:39 pm - Link - Report abuse 0
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Enrique Massot
MW

Doctored books?

Loan Argentina an unlimited amount of money?

“The IMF must also agree...”

I Think you may have a few knowledge gaps.

Some reading from different sources may help you make more meaningful comments.
Feb 24th, 2020 - 07:40 pm - Link - Report abuse 0
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MarkWhelan
No Enrique
Not necessarily different sources but maybe a less cynical outlook on Argentina's willingness to service any loans could moderate my posts.
When I see a willingness from Argentina to repay, on time, what they have already borrowed. Then you may see a willingness from me to accept their money grabbing efforts.
Feb 25th, 2020 - 01:33 pm - Link - Report abuse 0
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Enrique Massot
Mark

Argentine voters have just tossed a government that, during four years, borrow money like there was no tomorrow through executive decisions, that is, without bothering to seek legislative approval. The voters had never asked for that and Mauricio Macri had never said in campaign what he was going to do.

The two-month-old government of Alberto Fernandez faces tight, unrealistic repayment deadlines with very high interest rates while the economy is in tatters. Fernandez, and economy minister Martin Guzman, want to pay the debt back but also need to reactivate Argentina's economy without which no resources to pay can be generated.

To its credit, the IMF has, for the first time ever, acknowledged that Argentina's debt is unsustainable and that private creditors would “need to make a 'meaningful contribution' to resolve the crisis.” In my view, without saying it, the IMF is acknowledging its share of responsibility when it loaned the Macri government a record amount of funds without due diligence to check the country's repayment capacity.

If, through upcoming negotiations Argentina gets a more realistic schedule to make repayments and a haircut or interest rates reduction is granted, then the country can continue a path of reconstruction of the economy and the debt will be repaid.

Most of this is factual, and I fail to see your “cynical outlook” fits in it.
Feb 25th, 2020 - 06:50 pm - Link - Report abuse 0
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