Economy

New Argentine president goes to Europe to renegotiate debt with IMF

The IMF will not release the loan without the concrete signal that reforms will be made

Alberto Fernández, Argentina’s centre-left opposition leader
Alberto Fernández, Argentina’s centre-left opposition leader and rival of Macri in this 2019 elections. Photo: Shutterstock
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  • Between 2017 and 2018, Argentina negotiated a $ 57 billion loan with the IMF, which has not yet been released because the country’s economic situation has deteriorated;
  • Inflation is expected to reach more than 57% by the end of 2019.

According to the Valor Econômico and El Cronista newspapers, Argentine President-elect Alberto Fernández is scheduled to travel to Europe to renegotiate the Latin American country’s debt with the IMF. The trip will take place before he takes office on December 10.

In the itinerary, according to both publications, are France, Italy and Germany. In September, Fernández met with Spain’s Prime Minister Pedro Sánchez and Portugal’s President Antonio Costa.

Between 2017 and 2018, Argentina negotiated a $ 57 billion loan with the IMF, which has not yet been released because the country’s economic situation has deteriorated.

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Inflation broke out–expected to reach more than 57% by the end of 2019–and the country’s debt remained high, leaving little room for investment. The country’s debt, according to AFP reports, amounts to $ 315 billion–a figure the government says equals 68% of the country’s GDP, while rating agencies say it is almost 100& of the country’s GDP.

The IMF will not release the loan without the concrete signal that reforms will be made–and that now depends on Fernández.