He National government and International Monetary Fund (IMF) Negotiations for a new credit agreement officially began to refinance the country’s debt with the agency. .
So confirmed at a press conference this Thursday, September 10, the spokesperson for the multilateral credit organization in Washington, Gerry Rice.
“We are in the initial stages of our constructive dialogue with the Argentine government on a new program supported by the IMF“Rice told reporters there.
And I add: “We share your goals of stabilizing the economy by developing plans that will support recovery, will promote resilience and they will help Argentina fight the pandemic“.
He also referred to “Reducing poverty and unemployment and, of course, helping Argentina to fight the pandemic, which is a serious additional problem, is a new challenge facing the country”the official said today during the first press conference he offers after the summer break.
Until now, the IMF had focused on supporting Argentina to complete the debt restructuring process, and praised the country’s performance in its actions to control the expansion of Covid-19.
We are in the initial stages of our constructive dialogue with the Argentine govt over a new IMF supported program. We share their goals of stabilizing the economy by developing plans that will underpin the recovery, foster resilience and help #Argentina fight the pandemic. pic.twitter.com/DrfnQieqrv
— Gerry Rice (@IMFSpokesperson) September 10, 2020
However now, after having exceeded 500,000 infections and 10,000 deaths, the coronavirus became one more topic on the list of bilateral discussions, Rice revealed.
Rice confirmed that Argentina and the IMF are “in the initial stages of the process” of negotiations, after the country’s formal request to sign a new program with the organization, and that the “virtual” talks are taking place in a “very constructive” climate.
“In this phase we focus on hearing from the authorities their priorities, we are investigating and gathering more information on the current economic situation and establishing the modalities by which we would work together”Rice said; and emphasized: “All this takes place in what I would characterize as a very constructive climate,” he said.
It is worth remembering that last week, the Minister of Economy, Martin Guzman, had stated that it expects “responsibility and understanding” in the negotiations with the IMF and pointed out that the refinancing of that debt greater than 44,000 million dollarss, will finish putting “public finances in order“.
“We hope to have negotiations with the IMF based on responsibility and an understanding of what the situation in Argentina is today,” said the minister when participating in a meeting of the European Forum Alpbach, an interdisciplinary platform for European science, politics, business and culture, alongside the Nobel Prize in Economics Joseph Stiglitz.
And last Wednesday, at the conference organized by the Global Research Alliance for Sustainable Finance (GRASFI), Guzmán debated the role of the state in the design of sustainable finance and investment in times of COVID and also sent messages to the body.
“We look at sustainability in broad terms, starting with the social sustainability, economic sustainability. We are in a context in which there are delicate dilemmas, “said the official in reference to the impact of the pandemic in the country.
At the same time, the Minister of Economy pointed out that Argentina has historically suffered from recurring balance of payments crises, therefore One of the goals of Alberto Fernández’s administration is to put an end to this process by generating payment capacity in the country via economic growth.
LR / TL/MC