“Doubts about the IMF” raise concerns about Argentina’s debt

Keep an eye out for Argentina’s ability to pay off its debt

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Argentina’s dollar debt is entering a new test due to the short timetable for negotiation with private creditors, along with questions about the intervention of the International Monetary Fund, which are factors that may lead to pressure on the country’s debt.

According to “Bloomberg”, the method of negotiation by the government of President Alberto Fernandez may lead to a dispute with lenders.

The agency also believes that this method of negotiation frightens investors looking for deals in US dollars.

According to “Bloomberg,” the way the Argentine government negotiates is to accelerate planning, promotion, negotiation and approach a deal by the end of March.

She said Oxford Economics economics experts indicated this week that the International Monetary Fund may not intervene significantly until 2021.

She explained that the Fund’s intervention would take place when Argentina had to pay its debts to multinationals.

Analysts of the Telemer Foundation, which specializes in developing economies research, including Stuart Colleverhouse, said that the ambiguity surrounding the IMF intervention during the next two months may affect the confidence of bond holders in the government’s commitment to any plan.

Last December, the Argentine government announced that it had begun “discussions” with the International Monetary Fund on the country’s external debt that Buenos Aires is unable to pay.

“We have already had discussions with the International Monetary Fund, and there is recognition of the failure of the loan program” obtained by Argentina in 2018, stressing that “what is required is the recognition of the need for a different program.”

He added: “In order not to have to reform severe balances, it is necessary to solve the debt problem. In order to pay, we must have the ability to pay, and for that to happen the economy must stand again on its feet. We want a constructive relationship with all creditors, bondholders and the IMF.” .

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