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Cristina Kirchner wants to delay the agreement with the IMF, says the Financial Times

2021-02-15T15:19:12.305Z


The British newspaper ensures that the vice president is pressing for it to be postponed until the pandemic subsides. This would avoid adjustments before the elections.


02/15/2021 12:03

  • Clarín.com

  • Economy

Updated 02/15/2021 12:05 PM

Not only investors and Wall Street analysts believe that Argentina and the International Monetary Fund will not be able to close a program to refinance the debt before May, and that it could be delayed even

after the October elections

, as Clarín published on Saturday . 

Close to Cristina Kirchner they assure that it would be best to delay an agreement until the pandemic has passed, according to the British newspaper

Financial Times,

citing officials.

The vice president and her allies want to delay a $ 44 billion debt deal to "

avoid painful spending cuts

before the October midterm elections," the newspaper said.

"While the Minister of Economy, Martín Guzmán, recently said that the government wanted to conclude the negotiations on a new agreement with the IMF by May - later than initially planned, which was March - powerful voices in the Peronist government of the president. Alberto Fernández want an even greater delay, "says the FT, one of the most influential newspapers in the world.

In fact, Guzmán plans a trip to Washington DC at the end of the month to advance the negotiations.

Close to Cristina Kirchner they assure that it is impossible to say how long the coronavirus crisis could last.

"It is not very serious to make an economic agreement at a time when

it is not known whether [Argentina's] economy is going to remain open or closed,

" said the official.

"We are in an emergency [in Argentina]. We must not rush," the newspaper quotes.

The FT recalls that Gerry Rice, IMF communications director, said that they continue to "have very constructive conversations with the Argentine authorities while they work on the development of their economic plan that could be supported by a Fund program."

He noted that Kristalina Georgieva, managing director of the IMF, recently said that a deal for May would require

"more efforts from both sides."

Gerry Rice, spokesman for the Monetary Fund.

AFP photo

Most of Argentina's debt payments to the IMF are due in 2022-23, and an agreement with the Fund to reschedule them would strengthen market confidence. 

According to the newspaper, "net liquid foreign exchange reserves languish

near zero

, threatening another devaluation. The last fall of the Argentine currency in 2018 precipitated the historic rescue of the fund. International investors remain unwilling to lend to Argentina after its ninth default. sovereign last year, forcing Buenos Aires to borrow in local markets and print money to cover deficits. "

But some members of the Peronist coalition argue that the 30% rise in soybean prices since November

gives Buenos Aires more time

to reach an agreement with the IMF.

This

would help avoid the need for

politically difficult

adjustments

before the October elections.

Fund officials are understood to be concerned that, after more than three months of talks, little progress has been made.

Some are concerned that, once the agreement is signed, clashes on the eve of the election campaign will be inevitable.

"There was a push [for an agreement with the IMF] after the conclusion of the negotiation with private creditors last September, which the economic team lost," said Martín Redrado, former president of the Central Bank.

"Politically, the best time for Argentina to reach an agreement is after the elections, but from an economic point of view, the best time is as soon as possible," said a person briefed on the talks, according to the FT.

NE

Look also

Martín Guzmán will travel to Washington again to advance negotiations with the IMF

On Wall Street they have serious doubts that the Government will agree with the IMF before the Elections

Source: clarin

All business articles on 2021-02-15

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