Buenos Aires (AFP)

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

"Argentina has proposed (to the IMF) to initiate a dialogue to reschedule its debt," Finance Minister Hernan Lacunza, who was appointed just over a week ago, told a news conference.

Markets have shown signs of nervousness in recent days, seeing the specter of a default in payment.

At the time of his appointment, Lacunza said the government's priority was "to preserve the exchange rate as a prime objective" and to "respect the fiscal targets".

"To allow greater volatility" of the peso "would only add uncertainty and inflationary pressures," he insisted.

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%.

According to the agreement in force, Argentina must begin the first repayments in 2021.

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.

The center-left Peronist Alberto Fernandez is the favorite in the presidential election of October 27, after his wide victory in the primaries of August 11 when he won 47% of the vote, far ahead of the outgoing, Mauricio Macri (32%) who is seeking a second term.

On Tuesday, Alberto Fernandez's side drew criticism of the IMF after meeting with representatives in Buenos Aires. The peso collapsed in reaction and the Argentine central bank had to intervene massively.

- "Difficult times" -

The IMF responded Wednesday by ensuring "continue to be alongside" Argentina "in these difficult times."

The Fund "is currently analyzing debt transactions 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.

Overwhelmed by two currency crises in 2018 that caused its currency to lose 50% of its value, Argentina called on the IMF to rescue a loan of more than $ 57 billion. In exchange, the country is committed to balancing its accounts.

The first repayments are expected in 2021.

The recourse to the IMF in 2018 was 12 years after the early repayment of $ 10 billion in 2006, when former President Nestor Kirchner decided to break with the Fund. At that time, the price of soybeans and agricultural raw materials exported by Argentina were blazing on the international markets.

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.

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

© 2019 AFP