Argentina's Fernandez won't seek remaining $11 billion from IMF Macri bailout

[sandensea]

Last edited Wed Nov 27, 2019, 08:50 PM - Edit history (1)

Argentine President-elect Alberto Fernández said Tuesday he would he will not request the remaining $11 billion from a record, $57 billion credit line with the International Monetary Fund (IMF).

“What I want, is to stop asking (for money) and for them to let me pay,” said Fernández, who takes office on December 10.

“I have an enormous problem. And I'm going to ask for $11 billion more?”

There was no immediate response from the IMF, which granted outgoing President Mauricio Macri the bailout after a carry-trade debt bubble known locally as the “financial bicycle” collapsed in April 2018.

Amid the worst recession in two decades, Macri on October 27 became the first Argentine president to lose re-election.

Fresh faces

The IMF yesterday named a new head of mission in Argentina, Venezuelan-born head of the IMF's Open Economy Division Luis Cubeddu, to replace Roberto Cardarelli.

Cubeddu, 53, was part of the IMF's Argentina office between 2002 and 2004 - in the aftermath of the collapse of similar IMF-sponsored policies in 2001.

Among the Argentine officials he met at the time was Alberto Fernández - who served as cabinet chief for then-President Néstor Kirchner.

Kirchner rejected the IMF's austerity policies, and amid a strong recovery went on to pay Argentina's entire $9.5 billion IMF debt in 2006.

Fernández now faces a $45 billion IMF debt - plus another $160 billion in other public foreign debt, most of which is due within the next four years.

At: https://www.batimes.com.ar/news/economy/fernandez-says-he-wont-seek-remaining-us11-billion-from-imf.phtml

Argentine President-elect Alberto Fernández greets U.S. Ambassador Edward Prado yesterday.

Fernández inherits twin economic and debt crises from his IMF-backed predecessor, Mauricio Macri - whom the IMF granted a record, $57 billion bailout against the advice of its own economists, and reportedly on U.S. President Donald Trump's orders to bolster Macri's re-election chances.

Trump however, according to Fernández, has “instructed the IMF to work with (Argentina) to resolve the debt problem.”

[Judi Lynn]

1. Bold and brilliant. He is honest from the very first. Fernndez has seen how healing works already.

He saw it from the inside with President Kirchner.

Destruction can be accomplished so rapidly and easily by born villains like all fascists, but repairing the damage takes so much more work, and so much more time.

Bless this good, conscientious, well-balanced gentleman. Only someone very brave would undertake such a horrendous task.

[OhNo-Really]

2. May he live long!

[Judi Lynn]

4. By all means. n/t

[sandensea]

3. He's got his work cut out for him, that's for sure

My impression is that Trump understands that Fernández would rather not gravitate toward China - but will if the U.S. pressures the IMF to become unreasonable in debt rescheduling negotiations (Argentina can't pay $45 billion by '23, and they know it), or if the vulture funds are allowed to take Argentina's foreign bondholders hostage again (as they did in 2014).

If Trump, however, adopts a more pragmatic, cooperative policy (could it be!?) toward Argentina and its debt crisis, he'll surely find a far more responsible and trustworthy partner in Fernández, than he did in that con-man Macri.

[Judi Lynn]

5. It would be a shame if Trump or any of his "advisers" can't grasp the way to go with Fernandez.

Last edited Thu Nov 28, 2019, 01:06 AM - Edit history (2)

He could use a respectable ally in the Americas by now, couldn't he?

Thank goodness Trump wasn't able to gather up any support for his hope to get Ivanka in place as the head of the IMF or was it the World Bank? What an appalling "idea!"

Hoping there will be wiser people stepping forward to straighten out the wildness that gained the upper hand. It has always fallen to the leftist President to pull their countries together until the fascists feel the countries are sound enough to rape and plunder all over again.

It would be a true New World if the cyclical plunge into darkness could be sidestepped the next time, after good leaders restore the balance again.