Argentina closes agreement with IMF for debt of more than 40,000 million dollars: President Fernández

Argentina’s President Alberto Fernandez speaks during an event at Casa Rosada, Buenos Aires, Argentina. File photo Dec 10, 2021. REUTERS/Mariana Nedelcu

BUENOS AIRES, Jan 28 (Reuters) – Argentina has reached an agreement with the International Monetary Fund (IMF) to restructure debt payments of more than 40 billion dollars, President Alberto Fernández said on Friday, amid a protracted financial crisis. that crosses the country.

The southern country must cancel a payment of some 700 million dollars on Friday and faces onerous payments in the coming months that, according to experts, would be impossible for it to face without financial aid.

“We had an unpayable debt, which left us without a present and a future, and now we have a reasonable agreement that will allow us to grow and meet our obligations through our growth,” Fernández said in a television message.

The center-left president, who was seeking a deal that would not imply a sharp adjustment in the economy that could push more Argentines into poverty, explained that the deal will not condition the country’s economic policies and that it will not imply an abrupt cut in public spending.

“This agreement does not condition us, we will be able to act exercising our sovereignty and carry out our growth, development and social justice policies,” Fernández said.

Economy Minister Martín Guzmán is expected to reveal details of the agreement at a press conference on Friday morning.

The Executive Branch will send the agreement to Congress so that it has the support of the opposition, with which it maintains short circuits that in December led to Parliament rejecting the official budget project.

Argentina’s country risk fell 14 units to 1,889 points, according to traders.

(Reporting by Nicolás Misculin. Additional reporting by Lucila Sigal. Editing by Walter Bianchi)