Monday , April 6 2020

IMF chief Georgieva, Argentina minister discuss debt issue

Bloomberg

Argentina Economy Minister Martin Guzman and Kristalina Georgieva, managing director of the International Monetary Fund (IMF), discussed plans for a “secure and orderly resolution” of Argentina’s debt situation, the IMF said.
The conversation on the sidelines of the Group of 20 meeting in Riyadh, Saudi Arabia, also touched on ways to secure more sustainable and inclusive growth for the South American nation, the fund said.
Argentina will allow the IMF to conduct an Article IV review, a preliminary step that could eventually allow for a new programme with the IMF, the country’s economy ministry said in a separate statement.
Investors have been alert to developments this week since the organisation said creditors would need to make a “meaningful contribution” to lighten the nation’s staggering debt load.
In its most recent review, the IMF called Argentina’s debt burden unsustainable and said fiscal adjustment by the government would on its own be insufficient. That effectively gave the nation a seal of approval to hit bondholders with a significant haircut. The country has lost more than a third of its international reserves since July and had installed draconian capital controls.
The Article IV consultation is an annual review process wherein a team of IMF economists visits a country to assess economic and financial conditions.
Former President Cristina Fernandez de Kirchner refused to undergo the assessment, but her successor, Mauricio Macri, agreed to resume the process.

in 2016. Fernandez de Kirchner now serves as vice president to President vp to President Alberto Fernandez, who took office in December.
Following the G-20 meeting, Guzman will travel to Washington and hold meetings with IMF staff on Feb. 24, according to an official from Argentina’s economy ministry.
Argentina’s record IMF loan of $56 billion, of which $44 billion has been disbursed since 2018, has been on hold since August after Fernandez pulled off a shock upset of Macri in the nation’s presidential vote, sending markets reeling.
Georgieva on Saturday praised Fernandez’s efforts to “put in place a set of policies to stabilize the economy and reduce poverty.”

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