International Finance: Argentina Says IMF Economic Plan Would Derail Its Recovery

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Argentine Economy Minister Martin Guzman said the economic plan proposed by the International Monetary Fund as part of a $40 billion debt renegotiation would derail the country’s recovery.

While Argentina and the IMF are “on the same page” on the level of foreign reserves needed to support the country, they disagree on how quickly the government must reduce its fiscal deficit, Guzman said Wednesday as he laid out his most detailed vision yet for negotiations with the Fund.

“What we have is support of part of the international community but not all of it,” he said. “That’s the reason why there isn’t yet an agreement on this fundamental point, which is the fiscal issue.” Argentina owes the IMF $2.8 billion in March, a payment many analysts see as a deadline to reach a deal considering the central bank’s thin reserves. Some economists became more pessimistic about that deadline after watching Guzman on Wednesday, noting that he made no mention of improving Argentina’s business climate.

 

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