Kirchner says Argentina ‘can’t afford’ IMF debt

RIO DE JANEIRO, BRAZIL – “We can’t pay because we don’t have the money to pay,” Vice President Cristina Kirchner declared, according to the Bloomberg news agency. Argentina would have no way to honor the $45 billion debt with the International Monetary Fund.

Part of the total, in the amount of US$3.8 billion, matures already this year. The news came to light after Argentine Economy Minister Martín Guzmán met with IMF officials Tuesday in Washington.

Argentina is going through a seemingly endless fiscal crisis, spending more than it collects, with the situation getting even worse in times of pandemic. If the debt is not negotiated and restructured, a default will be inevitable.

Many wonder why a statement of such impact would come from the country’s vice president and not from its president, Alberto Fernández. Fernández’s popularity is on a steep decline, both because of the delicate economic situation in Argentina and because of the scandals that have exposed so-called “important people” who are allegedly skipping the vaccination line.

The crisis seems to have forced the president to turn to politicians who support the government, but who on the other hand consider Kirchner the true leader of the nation – which seems obvious to many international analysts.

Source: Veja