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Finance Minister Hernan Lacunza at his press conference in Buenos Aires on August 28, 2019 calling for rescheduling of the IMF. AFP Photos / Ronaldo Schemidt

Argentina on Wednesday urged the International Monetary Fund (IMF) to reschedule its $ 57 billion debt contracted in exchange for fiscal austerity. An attempt to calm the markets.

In front of the press, Hernán Lacunza, the Minister of Finance appointed a little more than a week ago, announces: " Argentina has proposed (to the IMF) to initiate a dialogue to reschedule its debt ".

Markets have shown signs of nervousness in recent days, seeing resurgence of the specter of a default that had already occurred on December 23, 2001. The South American country, unable to meet the repayment deadlines of its debt , had then experienced a serious economic and social crisis that had traumatized the Argentines and the markets.

Also to listen : Does the specter of 2001 hang over Argentina?

Monetary crisis

At the time of his appointment, the new Minister of Finance, Mr. Lacunza, said the government's priority was to " preserve the exchange rate as a first-rate goal " and " respect fiscal targets ". Its predecessor, Nicolas Dujovne , resigned on 17 August after a week of turbulence on the markets that saw the peso lose more than 20% of its value and the stock market dive by more than 30%.

Argentina has already resorted to the IMF in 2018. Overwhelmed by two currency crises in 2018 causing its currency to lose 50% of its value, Argentina called the IMF to the rescue to obtain a loan of more than 57 billion of dollars. In exchange, the country is committed to balancing its accounts. According to the agreement currently in force, Argentina must begin the first repayments in 2021.

Elections aggravate economic crisis

The minister's statements come a few days after the visit of a technical mission of the Fund to Buenos Aires where the economic crisis worsened after the electoral setback of President Mauricio Macri. Peronist Alberto Fernandez is a favorite in the presidential election of October 27, after his broad victory in the primaries of August 11 when he won 47% of the vote, far ahead of the outgoing, Mauricio Macri (32%) who seeks a second term.

►Also read: Argentina: the disastrous economic record of Mauricio Macri

On Tuesday, August 27, the camp of Alberto Fernandez made criticisms against the IMF at the end of a meeting with its representatives in Buenos Aires. The peso collapsed in reaction and the Argentine central bank had to intervene massively.

From esto es lo no quieren hacer cargo.

Presidente, no culpable busque will fuera of su propio Gobierno. pic.twitter.com/u6XOvCA91h

Alberto Fernández (@alferdez) August 28, 2019

The IMF " alongside " Argentina

The IMF responded Wednesday by ensuring " continue to be alongside " 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 a statement.

The tone of the fund's press release is positive, pointing out that its teams " understand that the authorities have taken these important steps to meet cash needs and to safeguard monetary reserves ".

The Argentine economy has one of the highest inflation rates in the world (54.4% over the last 12 months), an increase in poverty (32% in 2018) and unemployment (10.1% in 2019).

(With AFP)