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Argentina refuses to pay debt on IMF loans till recession over

Source : 112 Ukraine

The state needs to restructure the sovereign debt of $ 100 billion to creditors, including the IMF
20:22, 9 February 2020

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Argentina's vice president Cristina Fernandez de Kirchner said the government would not pay the International Monetary Fund “even half a cent” of its loan debt until the country emerges from an economic recession. Kirchner said this at the presentation of her "Sinceramente" (Sincerely) book at the international book fair in Havana on February 9, Reuters reported.

“The first thing we need to do to be able to pay is to get out of the recession. In the event of a recession, no one will pay even half a cent, and you can get out of the recession through large state investments,” de Kirchner said.

Argentina needs to restructure sovereign debt to creditors in the amount of $ 100 billion, including part of the $ 57 billion credit line that the IMF expanded in 2018.

Related: Ukraine's National Bank expects signing of new program with IMF soon

Relations with the IMF are key, as Argentina hopes to avoid default amid falling national currencies, sharp inflation and a worsening economy. An IMF technical mission is expected in Buenos Aires next week to discuss obligations owed to the fund.

Fernandez de Kirchner said Argentina should get a “substantial haircut” on its IMF debt.

As reported before, the EU would assign the second tranche of macro-financial aid after the Ukrainian side lives up to the IMF conditions. EU Commission's Executive Vice-President for an Economy Valdis Dombrovskis reported that during his meeting with Ukrainian Prime Minister Oleksiy Honcharuk.

Related: IMF is ready to assist China in fight against new coronavirus

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