Argentine Finance Minister Martin Guzmán is looking to strike a deal with the International Monetary Fund (IMF) to pay debts of up to $ 44 billion, the Wall Street Journal reported on Saturday 30th.
According to the report, the long-term program that Guzmán requested from the IMF would extend the payment of the debt by up to a decade, including $ 5 billion whose payment deadline ends in 2021.
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Still, the country will have to find a way to reduce spending or increase revenue, since that Guzmán plans to reduce Argentina‘s budget deficit to approximately 6% of the Gross Domestic Product (GDP). In 2020, this index was 8.5% of GDP.
For the newspaper, Guzmán also said that the gradual stabilization of the Argentine economy aims to stimulate growth and reduce inflation by five points a year. By increasing government revenue, it would be possible to contain the printing of money to cover expenses, which increases inflation (in 2020, it reached 36%).
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According to the analysis of journalists Santiago Pérez and Ryan Dube, the deal between the Argentine government and the IMF may encounter resistance in Vice President Cristina Kirchner. Defender of a strong policy of state intervention, Cristina presides over the Senate, which needs to approve the agreement with the IMF.