Monday, May 16

Wink to Argentina: the head of the IMF said that indebted countries “act now” to reschedule maturities


In a video conference on the sidelines of the Davos Economic Forum, the IMF chief said that a rise in US rates could have significant implications for countries with higher levels of dollar-denominated debt.

In this sense, he considered “very important” that the Federal Reserve (FED) clearly communicate its policy plans for rate hikes to avoid surprises.

Georgieva, speaking at a panel on the global economic outlook, said the IMF’s message to countries with high levels of dollar-denominated debt is: “Act now. If you can extend the maturities, do so. If you have currency mismatches, now is the time to address them.”

He expressed it at a time when Argentina seeks to renegotiate with the IMF a program to postpone maturities of the debt contracted by the government of Mauricio Macri, working on the technical aspects and also on the political level to avoid paying nearly 19,000 million dollars that they expire this year.

He also said that the IMF expects the world economic recovery to continue but considered that it is “losing some momentum”, as an advance of the specific figures of the world economic perspectives of the countries that will be known next Tuesday, through the traditional IMF report.

In addition to Georgieva, the panel also included the President of the European Central Bank (ECB), Christine Lagarde; the Governor of the Bank of Japan, Haruhiko Kur; the Minister of Economy of Brazil, Paulo Guedes, and the Minister of Finance of Indonesia, Sri Mulyani Indrawati.



www.ambito.com