Argentina's debt 'not sustainable,' says IMF

  • Thursday 20, February 2020 08:46 AM
  • Argentina's debt 'not sustainable,' says IMF
Sharjah24 – AFP: Argentina's debt is not sustainable, the IMF concluded Wednesday at the end of a week-long visit, urging the government to generate funds from private investors to address the issue.
President Alberto Fernandez's administration hopes to renegotiate $195 billion of its $311 billion foreign debt, including a deeply unpopular $57 billion bailout loan from the Washington-based International Monetary Fund in 2018.

Assuming power two months ago, Fernandez refused the final $13 billion disbursement of the loan, leaving Argentina's exposure at $44 billion.

"The Argentine authorities are moving to address the difficult economic and social situation facing the country," an IMF statement released after the meetings said Wednesday.

Argentina's ability to service its debt deteriorated markedly compared to the IMF's last analysis in July 2019, the fund said, when the amount owed was manageable.

Since then, the peso had depreciated by over 40 percent, international reserves declined by about $20 billion, and real GDP contracted more than previously projected.

Public debt rose to nearly 90 percent at the end of 2019 as a result.

Argentina's crisis was sparked by a sudden crash in the peso's value more than 18 months ago, a fall that continued last year.

The country became a market pariah after defaulting in 2001 on $100 billion in debt, something the Peronist Fernandez wants to avoid repeating.