US, WASHINGTON (ORDO NEWS) — Argentina needs substantial debt relief from private lenders to restore an acceptable level of debt. This is stated in a statement issued on Friday by the managing director of the International Monetary Fund (IMF) Kristalina Georgieva.
“To restore Argentina’s acceptable debt levels, it is highly likely that significant debt relief by private lenders will be required. We look forward to a process of cooperation between Argentina and its private lenders in order to reach an agreement requiring wide participation of lenders,” said the head of the IMF.
As Georgieva emphasized, “assisting Argentina in restoring its economy, focusing on its most vulnerable” sectors, remains a priority.
By the end of March, Argentina should pay off debts of more than $ 30 billion. The Argentine government last week reported that the country has no option but to reduce the debt burden, which is $ 311 billion or more than 90% of GDP.
Argentina has not been able to restore economic growth for several years and is among the countries with the highest inflation. In May 2018, amid a sharp drop in the national currency, the previous Argentine President Mauricio Macri turned to the IMF for help.
The fund approved the provision of Argentina $ 57 billion. The signed agreement provided for a series of reforms aimed at reducing inflation and the budget deficit.
On October 27 last year, presidential elections were held in Argentina, in which the center-left candidate Alberto Fernandez won. He said he did not intend to ask the IMF to transfer $ 11 billion – the remainder of the approved loan. He also said that he considers it necessary to agree with creditors on deferral of payments in order to give the Argentine economy the opportunity to develop and pay off debts.
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