Buenos Aires (AFP)

The markets reacted negatively Thursday in Argentina after the request of the government of a rescheduling of the debt at the International Monetary Fund (IMF).

Investors, who had already shown signs of nervousness in recent days face the specter of default, seemed worried despite the announcement of the Minister of Finance, Hernan Lacunza.

At the close of the Buenos Aires Stock Exchange, the Merval index lost 5.79% to 23,984.23 points. Argentine shares listed in New York and Europe also fell, according to several specialized sites.

The intervention of the Central Bank, which injected $ 200 million into the foreign exchange market, however, helped to contain the decline in the Argentine currency.

After depreciating 3.5% at the opening, the peso finally moderated its losses. At the end of the session, he lost 0.61%, trading at 60.54 pesos for one dollar.

In the morning, center-right president Mauricio Macri called for calm investors. "It is up to us to contribute to peace without causing fear or confusion", had urged the Head of State

On Wednesday, Argentina asked the IMF to reschedule its $ 57 billion debt contracted in exchange for fiscal austerity. According to the agreement signed in 2018, the first repayments must occur in 2021.

The IMF, whose mission traveled to Buenos Aires on Monday, reacted to this demand by ensuring "continue to be at the side" of Argentina "in these difficult times".

The Fund "is currently analyzing the debt operations announced by the Argentine authorities and is trying to measure the impact," the organization said in the evening on Wednesday.

In particular, Buenos Aires proposed the rescheduling of bond maturities with private institutional creditors, in the hope of halting capital flight and easing the tension on the exchange rate that has reduced the value of the peso de 20% since mid-August and nearly 70% since January 2018.

The government also wants to submit to Congress a draft law to promote voluntary refinancing of debt maturities "without loss of capital or interest" for investors, which would be requested only one extension of repayment deadlines, according to Mr. Lacunza.

Another IMF technical mission is to evaluate in the coming days whether it authorizes the $ 5.4 billion disbursement scheduled for September 15.

- Election campaign -

The economic crisis worsened in Argentina after the electoral setback of President Mauricio Macri.

Center-left Peronist Alberto Fernandez is the favorite of the presidential election on October 27, after his big victory in the primaries of August 11, where he won 47% of the vote, far ahead of the outgoing, Mauricio Macri (32%) who seeks a second term.

"We have 59 days left before the election, and the best way to do that is my responsibility as president, but it never depends on one government alone," Macri said.

On Tuesday, Alberto Fernandez's camp had criticized the IMF after meeting with representatives in Buenos Aires. The peso collapsed in reaction and the Argentine central bank had already had to intervene massively by injecting 300 million dollars.

Thursday, he declined to comment. "I have nothing to say," he told reporters.

The Argentinean economy, in recession since 2018, has one of the highest inflations in the world (25.1% between January and July, 54.4% over the last 12 months), a drop in consumption, closures of shops and an increase in poverty (32% in 2018) and unemployment (10.1% this year).

In 2001, the South American country, unable to meet the repayment deadlines of its debt, had experienced the largest defaults in history and a serious economic and social crisis that had traumatized Argentines and markets.

© 2019 AFP