For the IMF, Argentina can break recessionary cycles if it renegotiates a sustainable debt

"Argentina is a complex history. A country that went through boom and bust cycles for decades, that suspended payments eight times and is now in the ninth technical default, which we hope will not become real," said Georgieva in an interview published by the Spanish newspaper El País.

The director of the IMF also assured that "if (from the government) they come to the Fund to ask for an aid program, we will work hard to support the policies that break this cycle of boom and fall. "

" Argentina had turbulent relations with the IMF for a time (Kristalina Georgieva) "

Argentina maintains a debt of $ 44 billion with the IMF, which it will seek to negotiate after it closes the Treaties to restructure $ 66.3 billion of securities issued under foreign law.

"What we see now is an opportunity for the country to break this cycle and that opportunity must be anchored in something, which is to return the debt to a sustainable level e, "said Georgieva.

Sources at the Treasury Palace reported that until tomorrow the confidentiality agreement reached between the economy minister, Martín Guzmán, and a group of bondholders, to reach an agreement before Friday, the deadline. that the government set for the creditors to accept the proposal.

The government decided to improve the debt renegotiation offer based on the latest recommendations of the IMF and therefore resumed a round of exchanges with creditors to contribute to " a successful debt restructuring. "

IMF expensive Kristalina Georgieva and Martín Guzmán

Scope (Reuters)

Although there were no further specifications, the offer improvements include two years of grace, a total interest reduction of one just under 62% and an average capital drawdown of 5%, according to the information collected by Télam in recent days.

After the extension announced on Friday for another seven days until on June 19, for the acceptance of the Argentine proposal, it was explained that, except for a new modification, the announcement of results will be on Monday, June 22 and the date of execution, the entry into force and the date of settlement on June 25. [19659002] "Argentina is making an enormous effort trying to make an offer that also meets the creditors' claim. The restructuring of this debt is very complex," highlighted yesterday the president, Alberto Fernández. [19659002] The initial offer, released in mid-April, contemplated the non-payment of principal and interest maturities until November 2023, and as of that year pay a rate of 0.5%, which would gradually grow to sustainable levels.

In addition, that proposal involved a capital reduction of US $ 3.6 billion, that is, a reduction of 5.4% on the debt stock and a reduction in the payment of interest of US $ 37.9 billion, which is equivalent to a 62% discount.

This proposal was rejected three times, and at the end of May, the Ministry of Economy presented improvements in the offer, with a reduction in the grace period from the 3 years initially offered to 2 years and with an improvement in p ago of interests.

"I want to be optimistic. We all want to avoid default (Alberto Fernández). "

In addition, he proposed a menu with six bonds, the capital reduction was reduced to 1% and he incorporated a bond for unpaid interest. The government would even be willing to speak of a GDP coupon.

According to a calculation by the consulting firm Eco Go, with this improved offer from Martín Guzmán, each bond would be worth about $ 47 dollars per bond against the $ 40 of the original initiative.

Now , local media, citing official sources, also assured that the government would be willing to deliver a coupon tied to the evolution of the GDP plus another linked to the increase in exports, to reduce the gap with the proposal of the creditors.

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