Economy

Argentina formally initiates talks with IMF for a new program

The IMF already agreed to float cash-strapped Argentina a $57 billion financing program back in 2018

Alberto Fernández, the new Argentine President.
Alberto Fernández, the Argentine President. Photo: Shutterstock
  • Argentina’s economy minister and central bank chief requested formal talks with the IMF that would lead to a new program to succeed the “canceled and derailed 2018 stand-by arrangement”;
  • The letter detailed efforts by the government to prevent a further fall in output and employment, lower inflation and restore debt sustainability.

Argentina‘s government has formally initiated talks with the International Monetary Fund on a new program, it said in a statement on Wednesday, as the country takes the next step to recover from a crippling debt crisis.

In a letter to IMF head Kristalina Georgieva, Argentina’s economy minister and central bank chief requested formal talks that would lead to a new program to succeed the “canceled and derailed 2018 stand-by arrangement.”

READ ALSO: Mexican used car startup Kavak announces an expansion to Argentina

“We are determined to restart the process of pursuing a consistent fiscal path once the effects of the pandemic disappear,” the letter said.
The IMF agreed to float cash-strapped Argentina a $57 billion financing program in 2018 under the previous administration of Mauricio Macri.

The letter detailed efforts by the government of current President Alberto Fernandez to prevent a further fall in output and employment, lower inflation and restore debt sustainability.

READ ALSO: Pandemic exposes ‘digital inequality’ in Brazilian internet access

In a separate statement, the government said Fernandez told Georgieva by phone that a new agreement should focus on economic recovery and solving pressing social problems.

Argentina, earlier this month, reached a preliminary agreement with its creditors to restructure about $65 billion in foreign debt. Bondholders have until August 28 to formally accept the offer, though major creditor groups have expressed support for the proposal.

Get the best insights about Latin America market in your inbox