Argentina reached an agreement with the International Monetary Fund (IMF) to restructure the payments of a debt of more than 40,000 million dollars, the president said on Friday Alberto Fernandez, in the midst of the prolonged financial crisis that the country is going through.
“We have a reasonable agreement” that will allow the country to meet its obligations and maintain the growth of the economy, Fernandez said in a televised message.
Argentina reached a new credit agreement with the IMF on the same day that it must pay more than 700 million dollars for the first maturity this year of a debt of 44,000 million.
“I want to announce that the government of Argentina has reached an agreement with the International Monetary Fund. Compared to previous ones that Argentina signed, this agreement does not contemplate restrictions that postpone our development,” said the president.
The president did not give details about the agreement, which should alleviate the burden of debt maturities concentrated on this year (about 19,000 million dollars) and the next (another 20,000 million).
“We had an unpayable debt that left us without a present or a future and now we have a reasonable agreement that will allow us to grow and meet our obligations through our growth,” said the center-left president.
“This understanding plans to sustain the economic recovery that has already begun. It foresees that there will be no drop in real spending and an increase in investment in public works by the national government. Nor does it provide for devaluation jumps,” he added.
The IMF granted Argentina in 2018, during the government of Mauricio Macri (2015-19), a loan for 57,000 million dollars in the midst of a currency crisis, of which the country received 44,000 million since Fernández renounced the pending tranches when he took office in December 2019.
In 2020, after restructuring some 66 billion dollars of debt with international private creditors, the government began negotiations with the IMF to replace the 2018 stand-by agreement with an extended facility agreement that extends payment terms.
It is expected that the Minister of Economy, Martin Guzman, announce the terms of the new program later.
The Executive Branch will send the agreement to Congress so that it has the support of the opposition, with which it maintains short circuits that in December led to Parliament rejecting the official budget project.
Argentina’s country risk fell 14 units to 1,889 points, according to traders.
