IMF Says Finding Quick Solution for Argentina Is Difficult

RIO DE JANEIRO, BRAZIL – The International Monetary Fund (IMF) acknowledged today that it is difficult to solve the Argentinean issue quickly, due to the complexity of the situation.

“Given the complex situation and the political uncertainty, it is difficult to progress quickly,” said Gerry Rice, IMF spokesman, at a press conference.

Rice said he was unable to provide dates, but he explained statements made on Wednesday by David Lipton, acting director-general, which were construed by some media as indicating a suspension of negotiations.

“It is inaccurate to say that the IMF has suspended the negotiations. We remain fully committed to Argentina,” said the spokesman.

In late August, Argentina asked the IMF to reschedule the repayment of the US$57 billion loan granted in 2018, the first of which was due to be disbursed in 2021.

The country is going through a serious economic crisis that has led to a sharp devaluation of its currency, and presidential elections will occur in October, with an uncertain outcome.

There have been technical meetings between the two parties to discuss the financial assistance program, and Gerry Rice pointed out that another team from Buenos Aires will travel to Washington in the week of October 14th.

On Tuesday, the IMF reiterated its support for the Argentine officials, while David Lipton said the meeting he had in New York during the UN General Assembly with Argentine President Mauricio Macri, Finance Minister Hernan Lacunza and Central Bank Governor Guido Sandleris was “constructive”.

However, the IMF has not yet announced when it will release a new tranche of the loan or whether it will agree to defer repayments, as Buenos Aires has requested.

Even before taking office as Managing Director of the IMF on October 1st, Kristalina Georgieva met on Thursday with the Argentine Finance Minister.

Of the total loan approved in June 2018, Argentina has so far received US$44 billion, but the austerity measures imposed on the country have led to an increase in inflation, poverty, and discouragement.

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