Argentina is facing a bomb of billions of dollars in debt payments to the IMF (International Monetary Fund) that is approaching the payment date and it is uncertain if the South American country will honor it, amid tense negotiations to renew about US$ 40 billion in loans.
The country, which has faced currency and debt crises for years, is expected to return US$730 million to the IMF this Friday (28) and another US$365 million on Tuesday of next week, although the authorities have not confirmed plans to payment.
“We will know what will happen in the next few hours,” government spokeswoman Gabriela Cerruti said at a press conference on Thursday. She added: “The government of Argentina is willing to reach an agreement to pay in a sustainable way.”
The Fund did not immediately respond to a request for comment on the impending payments.
Argentina’s negotiations with the IMF to renew a failed 2018 loan have stalled in recent months due to disagreements between the two sides over how quickly the country should reduce its fiscal deficit as part of a medium-term economic plan.
This has hit sovereign bond prices, some of which have dropped below $0.30. More left-leaning politicians within the ruling Peronist coalition also began to harden their arguments against the Fund.
This Thursday (27), hundreds of people took to the streets of Buenos Aires to protest against the IMF, which many blame for the austerity measures that worsened a major economic crisis in 2001 to 2002 that plunged dozens of Argentines into poverty.
“What we are proposing is not just to stop paying the debt and break with the Fund, but to restructure the entire economy according to the needs of the majority,” said Celeste Fierro as he marched in the city in front of the central bank building.
Fierro, like others at the rally, said the country must not pay its debts to the IMF. “We believe in breaking away from the Fund and ignoring this debt, which is a fraud.”
Vilma Ripol, another protester, said payments must be suspended and that Congress must investigate the debt to avoid a repeat of the 2001 economic crisis.
“It was a disaster in 2001 that took years to recover from and pay for,” she said. “We keep paying and our membership keeps falling. That’s enough.”
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
