Economy

Argentine President meets with IMF Chief and seeks quick agreement

Argentina seeks to renegotiate a $45 billion debt with the IMF that was incurred during the previous administration

Photo: REUTERS/Gonzalo Fuentes
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  • Argentina is going through a deep recession with high inflation that analysts say could reach 50% by 2021;
  • Fernández is on a European tour with Economy Minister Martín Guzmán to seek support for renegotiating the debt.

Argentina‘s President Alberto Fernández met on Friday with the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, and expressed his desire to reach an agreement favorable to the country.

“The commitment is to reach an agreement as soon as possible, but we cannot think of an agreement that requires greater efforts from the Argentine people,” Fernández said after a meeting with Georgieva in Rome.

READ ALSO: Argentina‘s economy minister heads to Europe to woo finance officials over debts

Fernández is on a European tour with Economy Minister Martín Guzmán to seek support for renegotiating the country’s billion-dollar debt with the IMF and the Paris Club.

After the meeting, Georgieva said that “we committed to continue working together on an IMF-supported program that can help Argentina and its people overcome these challenges by strengthening economic stability, protecting the most vulnerable, and laying the groundwork for more sustainable and inclusive growth.”

“I have also taken note of President Fernández’s request to reform the IMF’s surcharge policy and will consult with our members on this matter,” Georgieva added in an IMF statement.

The South American country seeks to renegotiate a $45 billion debt with the IMF, which was incurred during the previous administration, and $2.4 billion in debt owed to the Paris Club.

READ ALSO: Argentina’s pandemic strategy shifts for second wave to protect its fragile economy

“It was a constructive meeting in which I insisted on my proposals that have to do with reducing surcharges, extending the terms and understanding that the world is living a unique moment and therefore we have to attend to that uniqueness,” Fernandez said.

“(Georgieva) is a woman who is very aware of the situation in which the world lives and is very understanding of the Argentine situation,” the president added.

READ ALSO: Suriname bondholders threaten to reinstate payments over IMF agreement

Argentina is going through a deep recession with high inflation that analysts say could reach 50% by 2021.

(Translated by LABS)

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