International Monetary Fund (IMF) staffers plan to return to Argentina in November to begin talks on a new rescue package for the heavily indebted South American country, after "productive" meetings took place from October 6-11 in Buenos Aires, two leading IMF officials said in a joint statement on Monday
MOSCOW (Pakistan Point News / Sputnik - 12th October, 2020) International Monetary Fund (IMF) staffers plan to return to Argentina in November to begin talks on a new rescue package for the heavily indebted South American country, after "productive" meetings took place from October 6-11 in Buenos Aires, two leading IMF officials said in a joint statement on Monday.
The IMF's deputy director of the Western Hemisphere Department, Julie Kozack, and Luis Cubeddu, the IMF's mission chief for Argentina, led the organization's delegation during talks with Argentine officials over recent days.
"Staff gained a deeper understanding of the authorities' policy plans to stabilize the economy and put it on a more sustainable and inclusive growth path. Staff welcomed the authorities' commitment to policies to secure a growth-friendly fiscal consolidation while also protecting the most vulnerable, enabling a gradual reduction in inflation, and boosting job creation, investment and exports," Kozack and Cubeddu said.
According to the two IMF officials, staffers from the organization will return to the South American country in November to begin talks on a new rescue package, as Argentina struggles to meet its scheduled payments on a $44 billion IMF loan.
"IMF staff will continue to engage closely with the authorities. Staff plans to return to Buenos Aires in mid-November to initiate discussions on a new IMF-supported program," the joint statement read.
The Argentine authorities this past August agreed to a restructuring deal with private creditors on $65 billion of sovereign debt; an agreement that allowed the country to formally exit its ninth default.
Argentina's GDP is expected to drop by 11.8 percent in 2020 due to the impact of the COVID-19 pandemic, according to the country's Central Bank.
