Argentina president announces new debt deal with IMF

The South American country was due this year to pay back $19 billion of its $44-billion debt to the IMF."Compared to previous ones Argentina signed, this deal does not include restrictions that would delay our development," said Fernandez.As well as Friday's sum, another $370 million needed to be paid on Tuesday.The center-left government had repeatedly said the repayment schedule was unsustainable given their lack of reserves, and was pushing to restructure the timetable."This understanding plans to sustain the economic recovery that has already begun."- 'No adjustment' -Under the new deal, Argentina has committed to progressively reducing its fiscal deficit from three percent in 2021 to just 0.9 percent in 2024, Economy Minister Martin Guzman said.It would also allow for public spending to evolve "without an adjustment." The government has enforced strict exchange controls since coming to power in 2019.The agreement must still be ratified by Congress, where the governing coalition -- despite being the single largest party -- is still in the minority.- 10 years for repayments -After successfully restructuring a $66-billion debt with private international creditors in 2020, Argentina began negotiations with the IMF to delay repayments.Guzman said the new agreement would not be ready for a few weeks as the two sides needed work on the "memorandums of understanding."From the beginning, Argentina's government insisted that the path to reducing its fiscal deficit was through economic growth rather than reducing public spending.The country experienced three years of recession until registering a 10 percent increase in GDP in 2021, although the economy had shrunk by as much the previous year as it suffered the worst effects of the coronavirus pandemic....

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January 29, 2022 at 12:14AM
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The South American country was due this year to pay back $19 billion of its $44-billion debt to the IMF."Compared to previous ones Argentina signed, this deal does not include restrictions that would delay our development," said Fernandez.As well as Friday's sum, another $370 million needed to be paid on Tuesday.The center-left government had repeatedly said the repayment schedule was unsustainable given their lack of reserves, and was pushing to restructure the timetable."This understanding plans to sustain the economic recovery that has already begun."- 'No adjustment' -Under the new deal, Argentina has committed to progressively reducing its fiscal deficit from three percent in 2021 to just 0.9 percent in 2024, Economy Minister Martin Guzman said.It would also allow for public spending to evolve "without an adjustment." The government has enforced strict exchange controls since coming to power in 2019.The agreement must still be ratified by Congress, where the governing coalition -- despite being the single largest party -- is still in the minority.- 10 years for repayments -After successfully restructuring a $66-billion debt with private international creditors in 2020, Argentina began negotiations with the IMF to delay repayments.Guzman said the new agreement would not be ready for a few weeks as the two sides needed work on the "memorandums of understanding."From the beginning, Argentina's government insisted that the path to reducing its fiscal deficit was through economic growth rather than reducing public spending.The country experienced three years of recession until registering a 10 percent increase in GDP in 2021, although the economy had shrunk by as much the previous year as it suffered the worst effects of the coronavirus pandemic....