BUENOS AIRES, Feb 13 (NNN-AGENCIES) — Recession-hit Argentina opens talks this week with a team from the International Monetary Fund, seeking relief from what President Alberto Fernandez says is an unsustainable foreign debt.
The government hopes to renegotiate US$195 billion of the country’s US$311 billion foreign debt – including a deeply unpopular US$44 billion bailout loan from the Washington-based IMF in 2018.
Fernandez insists Argentina cannot meet debt payments without economic growth, hampered by inflation of more than 50 per cent, as well as mounting poverty and joblessness.
Economy Minister Martin Guzman is also due to present his fiscal plan to Congress.
Guzman has already met with the IMF, while Fernandez embarked on a European tour to drum up support for his proposals.
So far, the IMF and the Argentine government have both spoken positively about their exchanges.
When assuming power two months ago, Fernandez refused the US$13 billion of outstanding disbursements, bringing the total to US$44 billion.
Fernandez’s government has until March 31 to reach an agreement with its creditors before it will almost certainly be unable to meet its repayment obligations.
Fernandez wants to avoid another devastating default like the one in 2001, when Argentina bailed on a US$100 billion debt.
It is estimated that Argentina will need to fork out US$34.3 billion in repayments and interest in 2020.
Argentina has proposed making its offer to creditors in mid-March.
Argentina has yet to miss a debt payment but did postpone some bond repayments under Macri.
On Tuesday, Buenos Aires postponed the payment of another bond that was to have come due later this week. — NNN-AGENCIES