Cairo – Voice of the Emirates
Minister announced Economy Argentine Martin Guzman said that Argentina will seek to agree on a new financing program with the International Monetary Fund, regardless of the outcome of its talks with Argentine Treasury holders with an outstanding value of $ 65 billion. As it prepares it for presentation to international creditors, he added the government “After examining the debt rescheduling process with private creditors, we expect to request a new program from the International Monetary Fund, to replace the previous program that was not implemented,” Guzman added. He stated that «this will happen regardless of what will happen with private creditors». The previous Argentine government had reached an agreement to obtain loans worth $ 56 billion from the International Monetary Fund, but was not implemented. The current Argentine government is working to increase tax revenues and reduce the fiscal deficit, although achieving these goals will take longer than previous estimates by the International Monetary Fund due to the implications of the emerging Corona Virus pandemic.
This comes as international creditors stepped up pressure on Argentina to accept their proposal to schedule their debts, and they said they supported investor retention of most of Argentina’s external debt. Creditors reject Argentina’s offer as its final offer to reschedule $ 65 billion in debt and defend their proposal in a letter to the Argentine economy minister. According to the message released Tuesday, three groups of Argentina’s main creditors sent it on July 20. He supports the creditors’ proposals, groups of them owning about 60 percent of Argentina’s foreign currency bonds and 51 percent of their total international bonds … and if no agreement is reached, bankruptcy will threaten the country again, and that will be the ninth time that the country has defaulted in Argentine history. .
Argentina faces a serious financial and economic crisis, and the inflation rate has increased by more than 50 percent recently. Experts predict that this year the growth of the economy will decrease by about ten percent. At the end of last May, Argentina failed to pay $ 503 million in interest, which led to default. The Argentine government announced earlier this week that it had rejected the international creditors ’proposal, and the Ministry of Economy of Buenos Aires said on Saturday that it was not New requests can be met. “The matter will not only be irresponsible, it will also be unfair,” the ministry said in a statement. Lenders recently called for raising interest rates on government bonds and making changes to some contractual terms. However, the Argentine government is sticking to its latest offer and is not ready to make any further concessions.
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