Meeting With Argentine President Was Constructive, IMF Says

Argentina's President Alberto Fernandez on Friday met with International Monetary Fund (IMF) Director Kristalina Georgieva in the context of his European campaign to win support for renegotiating a US$45 billion sovereign debt.

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"We intend to find an agreement as quickly as possible but not just any agreement," Fernandez said and explained that his government is seeking "a solution that does not mean putting off the Argentine people who are having a very hard time because of the pandemic and the economy we inherited."

The President also stated that he is optimistic about the possibility of reaching an agreement in the short term for the renegotiation of the IMF debt.

Georgieva indicated that the meeting with Fernandez was "very constructive" and that the IMF staff will continue working to define a schedule of terms for the payment of Argentina's debt.

"We also discussed the important efforts the Argentine authorities are making to address the deep social and economic challenges facing the country," she said, adding that "we talked about the urgent need to continue to fight the COVID-19 pandemic to preserve lives and livelihoods."

While Georgieva expressed her interest in addressing "the unique challenges facing middle-income countries," she will consult with IMF members before responding to the request to reform the surcharge policy that applies to emergency lending.

In early May, Argentina requested that loan access limits and interest rate surcharges be suspended for the duration of the pandemic. The current IMF policies on these issues affect most those countries experiencing a recession.