Argentina should renegotiate IMF loan, says opposition presidential candidate

20 Aug 19

Argentina would struggle to repay a loan to the IMF under the current “impossible” conditions, the opposition presidential candidate has claimed.

Alberto Fernandez said he would renegotiate the terms of the loan, in an interview with Argentinian tabloid Clarin published on Sunday.

He claimed current president Mauricio Macri, who signed an agreement with the IMF last year for $56.3bn – the biggest IMF bailout package ever - signed a “very harmful pact for Argentina”.

It came with the condition that the South American country should commit to reach a ‘zero’ deficit by 2019.

Fernandez said: “In truth, Argentina did not meet the inflationary goal, or the growth goal, or the fiscal goal.

“And [Macri] also promised to return the loan in impossible conditions.”

Fernandez said he would be willing to talk to the IMF and “seek better conditions”.

He proposed a “bond of respect” with the fund.

“It is clear that we are the debtors, and therefore the weakest part of that relationship, but being a debtor does not make you obsequent or submissive.

“What you must do is defend the Argentine position,” he said.

Centre-left Fernandez beat Macri in a primary election vote last week, sending the Argentine peso plummeting in value.

Seen as the less market-friendly candidate, his win (47.4% against Macri’s 32.3%) spooked investors.

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