Argentina is still not on the improved offer of the creditors to waive part of their receivables by 65 billion euros. Instead, the government in Buenos Aires once more to the aid of the International monetary Fund (IMF). Minister of economy, Martín Guzmán announced the projects, a new IMF programme, regardless of the debt negotiations with creditors.
Markus Frühauf
editor in the economy.
F. A. Z. Twitter
The period in the debt dispute ends at 4. August, come Tuesday of next week. At the weekend the Argentine government had let the creditors with your upgraded offer off. Now, the ninth is threatened with national bankruptcy in the history of the South American country.
No further concessions
the Last had been demanded by the creditors, including large investment companies such as Blackrock and Fidelity, higher interest rates on the government bonds and Changes to some clauses of the contract. The Argentine government is set to hold to its recent range and is no further concessions. Far, the offers will not be apart, is media reports to refer to.
The Argentine economy has been hit by the Corona-crisis. This explains why the Ministry of economy showed very emotionally to the offer of the creditor: “it would only be irresponsible but also unfair. While 50 percent of children live in Argentina in poverty, we can not increase the short-term gains of our creditors.“
Argentina is in a severe financial and economic crisis. The inflation rate was more than 50 percent. For this year, experts expect a decline in the economic power of 12 percent. At the end of may Argentina interest rate had not settled receivables in the amount of $ 503 million, and had slipped into a limited payment default. Guzmán had declared in may, just in the Virus-times could not spend, Argentina 20 per cent of its government revenues on interest payments. The IMF has referred to the debt burden of the country as unacceptable. Argentina sits a total of 323 billion dollars in debt (as of end 2019).
