Fernández Speaks With The IMF Head And Proposes To Agree On Payment But Without Adjustment

Buenos Aires, Nov. 19 (EFE) .- The elected president of Argentina, Alberto Fernández, spoke Tuesday with the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, who said he would propose a debt settlement agreement with the organism, but 'without adjustment'.

"We are going to propose a sustainable economic plan and a payment agreement that we can fulfill, but without further adjustment," Fernandez said in his telephone conversation with the IMF head.

In 2018, the Government of outgoing Argentine President Mauricio Macri signed a three-year financial assistance agreement with the Fund for a total of 56.3 billion dollars.

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Of that total, the agency has already disbursed some 44,000 million dollars, but since last September the drafts have been suspended.

Fernández, who won the presidential elections last October 27, has raised in campaign the need for Argentina to agree with private creditors and with multilateral organizations longer payment terms, without capital or interest withdrawals, although since his electoral triumph no It has specified details of an eventual proposal to alleviate the heavy horizon of debt maturities.

In his conversation with Georgieva today, Fernández said that the main objectives of his Government's economic program will be reflected in 'a plan that Argentina can fulfill and that allows it to recover growth in order to honor its debts'.

Argentina, plunged into recession since 2018, accumulated a debt for 315,000 million dollars last September, of which 126,000 million were held by private creditors and 75,000 million were with international organizations.

The problem is that in 2020 Argentina must face debts with private creditors and multilateral organizations for about 39.3 billion dollars, a sum that becomes unpayable without possibilities of refinancing through voluntary credit markets or new loans by international organizations .

The moment in which Argentina lives is' particularly difficult ', warned Fernández, who, nevertheless, assured that he is' in a position to propose a plan to solve Argentina's problem and be able to pay the debt with the IMF and the rest of the creditors '.

'I understand the relevance of fiscal viability, I don't have to convince myself of that. But it is my duty to anticipate that in the situation in which the Argentine economy is, it is difficult to bring about a greater adjustment, 'Fernandez told the head of the IMF.

According to a statement from the president-elect team, Fernández insisted that "no more fiscal adjustments can be made because the situation is of enormous complexity" and "the level of adjustments in the Macri era has been tremendous."

According to the statement, the head of the IMF said that they have 'moved' the priorities set by Fernandez for his Government, which will begin on December 10.

"I have been moved by their priorities: the reduction of poverty and the fight against hunger in an economic environment that allows for growth and employment, to improve the lives of the Argentine people," Georgieva said.

The managing director of the Fund said that she wants to 'see Argentina leaving behind the boom and bust cycles to achieve a sustainable trajectory of growth with social development.'

"We are also interested in the proposal that you have made around a social pact to reduce inflation," he said.

According to the statement, Giorgieva was "very eager to know more details" of Fernandez's government plan because, he said, "when a country owns its plan, those plans are effective."

'We have your leadership and that of your team, let's get our hands on the order to move forward. I'm sure we will work together, 'Giorgieva added. EFE

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