Argentina’s vice president, leftist Cristina Kirchner, on Thursday (25), called for “national unity” to “set aside” the program agreed between the country’s government and the International Monetary Fund (IMF), considering that under the current terms, “it will be impossible” to pay the debt with the institution.
“If we don’t manage to put aside the program that the IMF imposes on all its debtors and allow us to elaborate our program of growth, industrialization, and technological innovation, it will be impossible to pay it, no matter what they say,” the former president (2007-2015) and current vice president told thousands of people gathered in the Plaza de Mayo in Buenos Aires.
Cristina Kirchner was the keynote speaker at an event to mark the 20th anniversary of the inauguration of her husband, the late Néstor Kirchner (2003-2007), as president of the country – he was her predecessor in office.
Also present were Economy Minister Sergio Massa and the main leaders of Kirchnerism’s “hardcore”.
During her speech, the former president assured that the credit granted by the IMF to the government of former President Mauricio Macri (2015-2019) in 2018 was “a political loan” and, therefore, must be redefined through “politics.”
“They think they can pay it back with commodities only.”
“And don’t forget, because commodities also end up regulating financial flows and always accommodate you so that you continue to owe.”
“National unity is essential in the face of this. It was a political loan, and politics must also be the solution,” he emphasized.
FISCAL IMBALANCE
In March 2022, the government of the current president, Alberto Fernández, signed an agreement with the IMF to refinance about US$45 billion borrowed from the institution through an extended facility program that includes targets for fiscal discipline, accumulation of monetary reserves, and limits on currency issuance.
So far, there have been four quarterly reviews of the agreement, and the country is facing severe fiscal imbalances, exacerbated by a drought that has hit the agricultural sector and made it difficult to meet these targets.
Both sides are currently discussing the terms of the agreement in talks that the IMF described as “constructive.”
With information from EFE
News Argentina, English news Argentina, Argentine economy