The International Monetary Fund (IMF) said it was analyzing Argentina's suggestions concerning the restructuring of its debt to the organization amid the economic crisis facing the country
BUENOS AIRES (Pakistan Point News / Sputnik - 29th August, 2019) The International Monetary Fund (IMF) said it was analyzing Argentina's suggestions concerning the restructuring of its debt to the organization amid the economic crisis facing the country.
On Wednesday, the country's Treasury minister, Jorge Roberto Hernan Lacunza, said that the next week, Argentina would begin talks with the IMF on reviewing the period of repaying its debt to the IMF amid the economic instability facing Buenos Aires. The IMF said its team, which had left Argentina earlier this week, had productive negotiations with Lacunza, Guido Sandleris, the Argentinian Central Bank head, and presidential hopeful Alberto Fernandez.
"Regarding the debt operation announced by the Argentine authorities today, Fund staff is in the process of analyzing them and assessing their impact. Staff understands that the authorities have taken these important steps to address liquidity needs and safeguard reserves," IMF chief spokesman Gerry Rice said in a statement, issued late on Wednesday.
The fund would maintain dialogue with Argentina and would continue supporting the country, Rice added.
Since mid-August, Argentina's economy has been facing a crisis which followed the announcement of results of primary elections. The vote saw the opposition alliance Front of All led by Fernandez winning over the Together for Change coalition of incumbent president Mauricio Macri ahead of the general elections, scheduled for October.
The situation led to a sharp drop in peso and prompted international rating agencies to downgrade the country's credit ratings.
In 2018, the IMF agreed to disperse $50 billion to Argentina under the Stand-By Agreement with the Latin American country to help it cope with an economic downturn. The loan was subsequently boosted to $57 billion through 2021.
