Buenos Aires (AFP)

Argentina's debt "is not sustainable" and the country needs creditors to help make it bearable, concluded on Wednesday the International Monetary Fund (IMF) which has just completed a mission in Buenos Aires.

"IMF staff believe today that Argentina's debt is unsustainable," the international institution said in a statement. She calls for the contribution of bondholders to "help restore debt sustainability".

The IMF believes that the primary surplus (excluding payment of debt) that would be necessary for the Argentine state to meet these obligations and boost growth is "neither politically nor economically feasible".

Argentina's debt represents more than $ 311 billion, or more than 90% of GDP.

Two months after taking office, Argentinian President Alberto Fernandez, a center-left Peronist, said that his country's debt is not repayable as it stands. He called on the IMF and his country's creditors to renegotiate the terms, capital and interest on the debt.

"The Argentine authorities are working to remedy the difficult economic and social situation facing the country. They have implemented a set of policies to cope with the increase in poverty, while taking measures to stabilize the economy, "adds the Fund, which believes, however, that more effort is needed to reduce inflation.

- "Significant deterioration" -

But debt and the ability to repay interest "have deteriorated significantly compared to the last IMF debt sustainability analysis in July 2019", which said the debt was sustainable.

Since then, the peso has depreciated by more than 40%, international reserves have shrunk by around $ 20 billion and real GDP has contracted more than expected.

Argentina had repaid all of its debt to the IMF in 2006. But the government of the liberal Mauricio Macri (2015-2019) contracted in 2018 the largest loan in the history of the Fund for 57 billion dollars, including 44 billions have already been paid.

Argentina is facing the worst economic crisis since 2001. The economy has been in recession for almost two years, inflation has exceeded 53% and the poverty rate has reached almost 40%. Faced with this situation, Alberto Fernandez renounced the latest IMF disbursements.

He promised the Argentines not to repay the debt until the economic situation has improved.

In 2001, Argentina had experienced the biggest default in history and a serious economic and social crisis that had traumatized Argentines and the financial markets.

© 2020 AFP