Monday, August 8

Former IMF director who was key in the loan to Macri says that Argentina will not pay the debt

“I think the situation in Argentina is a bit invariable to an IMF program. Argentina is not going to pay the IMF”, said the former director for the Western Hemisphere of the organization Alexander Werner, who also considered that an eventual agreement between the parties will represent a “temporary band-aid.”

Werner actively participated in the agreement that the IMF signed with former president Mauricio Macri for a total loan of USD 57,000 million, the largest in the history of the organization.

According to the NA agency, in the Alberto Fernández administration they consider that the statements respond to the fact that Werner now works for the Inter-American Development Bank (IDB), an organization that wants to limit the ability to lend to Argentina in the current government.

In this way, they affirm that the intention is to create conditions so that, even with an agreement with the IMF, the IDB has arguments to deny credit to Argentina.

“It shows who they are and what interests they defend,” question government sources, who also insist that the IMF loan to the country was used for two things: “Financing capital flight and paying off debt that should have been restructured.”

They also noted that Werner responds politically abroad to the political line of the opposition and point to the economist for being the “architect of the worst agreement in history.”

The importance of reaching an agreement

Economists and consultants highlighted the need for Argentina to reach an agreement with the IMF and affirmed that it should be closed in December in a context in which the reserves could “suffer” even more.

“The strategy is to try to build a bridge until the agreement with the Fund and until the arrival of the heavy harvest dollars in April”, analyzed Adrián Yarde Buller.

In addition, he stressed that it will be a “challenging” situation for the “post-election scenario due to the reserves.”

“In December you have to make a payment to the IMF and, at the same time, there is a gap, which, depending on the exchange rate taken, can exceed 100%,” he said in radio statements.

From Analytica Consultora they expressed that “the latest data on the exchange balance are not encouraging, considering the continuation of the appreciation of the peso until November, the fiscal pressure on the Central Bank to carry out transfers of pesos and the future conditionalities of the IMF”.

“If the agreement with the Fund is not closed in December, in addition, the SDRs will have been almost entirely used for the payment of debt services, further hurting the reserves,” he projected.

While, the economist Miguel Kiguel estimated “if Argentina does not want a stormy summer, it will have to arrange with the Fund.”

According to his point of view, to pay the debt with that body “you have to take on more debt.”

“Next year we have to pay the IMF USD 18,000 million in capital and Argentina does not have it by chance,” he stressed.