Daily Management Review

Argentina finds a way to pay off IMF loan


Argentina is going to get rid of the economic crisis and pay off its debts. IMF is ready for cooperation.

Argentinean President-elect Alberto Fernandez assured Kristalina Georgieva, Managing Director of the International Monetary Fund, that his team has a plan to allow the republic to pay off the loan under an international organization.

The elected president noted that he was not going to apply austerity measures.

"I must warn that in the conditions in which the economy of Argentina is, it will be difficult to implement a new reduction in budget expenditures," he said.

Georgieva, in turn, noted that "the IMF wants to work with Fernandez to solve the inflation problem and stimulate growth."

Recall that in mid-October the IMF significantly worsened the forecast for a fall in Argentina's GDP to 3.1% this year. The country's economy will not recover and is expected to drop by 1.3% in 2020, follows from the report of the fund.

In May 2018, amid a sharp drop in the national currency, then-President of Argentina, Mauricio Macri, turned to the IMF for help. In June, the fund approved provision of Argentina $ 57 billion on a standby loan facility. 

source: reuters.com