Washington / Buenos Aires (dpa) - One day before the end of the current round of negotiations between the Argentine government and its creditors, the South American country received support from the International Monetary Fund.
The IMF found the debt rescheduling offer made by Argentina in a statement as “highly likely compatible with the restoration of debt sustainability”. According to the IMF, there is limited scope to increase payments to private creditors and to keep the thresholds for debt and debt service. The Argentine government now wants to consider “the possibility of additional adjustments,” according to a statement by Economics Minister Martín Guzmán. The government announced that the negotiations would be extended until June 12.
Argentina plans to restructure $ 63.3 billion in loans. The major creditors rejected an initial government offer, which included a haircut and a payment moratorium until 2023. It should be renegotiated. After the deadline for reaching an agreement and Argentina continued to go bankrupt, the government in Buenos Aires extended the debt rescheduling offer again until June 2. The second largest economy in South America is in a serious crisis. The inflation rate was more than 50 percent recently. Economic power is expected to decline by 5.7 percent in the current year. The IMF had recently described Argentina's debt as unsustainable.