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According to the IMF, the debt payment terms cannot be extended as requested by Cristina Kirchner

2021-03-25T16:05:03.137Z


The vice president had said that the terms and fees that are claimed are "unacceptable" and cannot be paid. The spokesperson said the deadlines are the same for all countries.


Paula Lugones

03/25/2021 12:51 PM

  • Clarín.com

  • Economy

Updated 03/25/2021 12:55 PM

Washington (correspondent) .- The International Monetary Fund ratified this Thursday that the term for repayment of the loan that Argentina requests from the agency is up to 10 years and that these conditions

"apply uniformly to all countries."

That was the response given by the Fund's Communications Secretary, Gerry Rice, when asked about Vice President Cristina Fernández de Kirchner's request that the IMF

extend the

repayment

period

of Argentina's debt beyond that limit because the The country cannot now meet that commitment.

At a press conference in Washington, Rice

briefly

answered

some questions about Argentina, at a time when Economy Minister Martín Guzmán is in Washington negotiating a new Extended Facilities agreement (which has a longer repayment term) with the agency, to replace the previous stand-by of US $ 57,000 million (disbursed 44,000 million) that the IMF granted in 2018 and

that has shorter repayments.

The spokesperson was asked about the harsh speech that the vice president had made on Wednesday to the Fund, in which she had said that "we all know that with the terms and rates that are intended, it is not only unacceptable, it is not a subjective matter. It's a question that

we can't pay because we don't have the money to pay

. "

Rice was specifically asked if it was possible that the body could approve

a special interest rate for Argentina and an additional term.

Rice responded that the Argentine authorities had said that they preferred an Extended Facilities loan, and that “the disbursements made under this loan are paid over a period of 4 and a half to 10 years, in 12 semi-annual installments,

these conditions are applied uniformly.

to all countries, not just Argentina.

I would tell them that I have no more information to add ”.

The spokesperson also did not give details about the content of the dialogue between Guzmán and the Fund's managing director, Kristalina Georgieva, on Tuesday, apart from the fact that it was a

"very good" and "productive" meeting.

He was also asked about the transparency in Argentina's use of Special Drawing Rights (SDR) that could reach the country additionally if the Fund approves a recapitalization initiative for US $ 650,000 million in June.

There would be 4,453 million that would enter in a moment of crisis and in an electoral year.

He replied that

the recapitalization is still in an initial stage

and that for now “we are not going to go further or prejudge what one country or another can do with this issue.

If the SDR allocation is approved, they will be allocated according to the quota that each country has in the Fund, beyond those principles and the schedule, I do not want to speculate.

Argentina is excited about the possibility of having more money from the Fund itself, through a reform that the organization analyzes with the endorsement of the G20 and the G7: the capital increase through the SDR.

This discussion is currently taking place at the Fund.

The executive board was in meeting on Tuesday, while Guzmán was with Georgieva, and approved a possible injection of US $ 650 billion.

There are still some instances for final approval, which could only be beyond June.

But for Argentina it

would be an important lifeline this year.

Rice was also asked why there was so much secrecy in the negotiations with Argentina, since they were talking about the largest loan in the history of the organization.

The spokesperson said that "when negotiations are in progress, at a technical level, the usual procedure is

not to guess

what is happening or to anticipate those conversations because it is not very useful to do so for either party" and clarified that "this is not applies only to Argentina ”.

NE

Look also

Cristina Kirchner's message in full negotiation with the IMF: "We cannot pay the debt, we have no money"

Impact of Cristina's speech: bonds fall again and country risk passes 1,600 points

Source: clarin

All business articles on 2021-03-25

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