Argentina asks to negotiate a new financing program from the IMF

Buenos Aires – Dr.

Posted on: Wednesday 26 August 2020 – 11:55 PM | Last update: Wednesday 26 August 2020 – 11:55 PM

Argentina has submitted a formal request to the International Monetary Fund to start negotiating a new financing program to replace the 2018 agreement that failed to save Argentina from its economic crisis.

According to the letter sent by the Argentine government to Kristalina Georgieva, Director of the International Monetary Fund, Argentine officials want to start consultations before the approval of the program, which will include processing of the $ 44 billion in installments owed by Argentina to the IMF from the previous program.

The letter, which was posted on the Twitter social networking site, praised the “constructive relations” with the fund so far, adding that the government wants the new program to avoid the problems that were in the previous program.

And Bloomberg News reported that this step comes as Argentina approaches the final stage of the process of rescheduling debts owed to private international financial institutions, worth 65 billion dollars. And creditors still have until August 28 to accept the rescheduling offer made by the government, which provides for the payment of 55 cents for every dollar of debt owed.

This agreement will pave the way for Argentina to begin negotiations with the IMF on new financing.