The Economist argues that with the latest legislation, the Argentine central bank has lost its legal independence and become the piggy bank of President Cristina Fernandez government.
Argentina should pay its debt with the Paris Club group of creditor nations if it wants to continue receiving foreign investment, said Paolo Martelli, director for Latin America of the World Bank’s International Finance Corp, reports Buenos Aires daily La Nación.
Big business in Argentina agreed to prolong the current ‘truce’ with the government of President Cristina Fernandez but called for more investment and improved competitiveness with more accessible financing, besides a return to the international voluntary credit market and an agreement with the Club of Paris.
The IMF confirmed that Argentine president Cristina Fernandez de Kirchner phoned incoming Managing Director Christine Lagarde last week, a few hours before the Fund reiterated its objections to Argentina’s official statistical data.
Argentine Economy Minister Amado Boudou confirmed that the ministry sent a letter to the Paris Club in order to initiate negotiations and establish a course of action for the cancellation of debt, although no specific dates were mentioned.