Argentina economy spiraling recession, growing poverty, high inflation, billions of dollars in debt compounded with interest debt enlarging.
Martín Guzmán, the economy minister, told Congress on Wednesday that the IMF is partly to blame for Argentina’s current debt crisis, though progress is being made in debt meetings. He said the country needs more time.
“To be able to pay the debt, Argentina needs to grow and to be able to grow, the weight of a suffocating debt needs to be lifted,” Guzmán said.
Argentina crunch cash to pay creditors, and is desperate for relief from its total debt burden, also valued at around $100 billion. It’s a balance for President Alberto Fernández, who seeks a deal with the IMF that does not alienate his leftist base, as represented by his deputy and former president, Cristina Fernández de Kirchner.
IMF team arrives for talks on restructuring $44 billion in debt owed to the lender. All involved are anxious to avoid a replay of 2001, when Argentina defaulted on about $100 billion in debt during the worst economic crisis
“It will be a frantic negotiation to put an end to austerity, restructure commitments with the fund, and get the latter’s green light to pursue a renegotiation with private bondholders, all by 31 March 2020,” Verisk Maplecroft, a consulting company based in Britain, said in a report.
At the time of the 2001 default, the relationship between Argentina and the IMF grew increasingly strained. The IMF later acknowledged shortcomings, including a failure to identify vulnerabilities in the Argentine economy during its boom years.