The US put this condition to support Argentina before the IMF / Argentina News

Washington contacted the government this week after it failed to pay its $ 2.4 billion debt with the Paris Club at the end of May

The United States will continue to support Argentina financially if the government of Alberto Fernandez generates a “solid” economic framework that is capable of generating expectations of employment creation in the private sector.

This was pointed out by the undersecretary of the US Department of the Treasury, Wally Adeyemo, in the conversation with the Argentine Minister of Economy, Martín Guzmán, about the agreement with the Paris Club and the current negotiations with the International Monetary Fund (IMF) on the refinancing your debt.

As reported in a statement on Wednesday by the US Treasury Department, andhe Joe Biden government will support the Argentine Executive if it establishes “a solid framework of economic policy that generates expectations of job growth in the private sector.”

Washington contacted the Argentine government this week after Buenos Aires failed to pay its $ 2.4 billion debt with the Paris Club at the end of May and decided to take advantage of the 60-day grace period that was opened before this delay, a window of time that it will use to continue negotiating with the forum of creditor countries, informs EFE.

Debt refinancing

Joe Biden’s government will support the Argentine Executive

Argentina was due to make on May 31 the payment of the outstanding balance of principal and interest that it has with the Paris club by virtue of the provisions of a refinancing agreement signed in 2014.

Argentina’s main creditors in the Paris Club are Germany, Japan, the Netherlands, Spain and Italy.

About the IMF, President Alberto Fernández recently pointed out that negotiations with the agency to refinance debts of about $ 45 billion are focused on payment terms and interest rates..

The reality is that Argentina has been negotiating since last year with the Fund to refinance debts for about 45,229 million dollars, on original loans for 44,128 million granted by the agency through an agreement signed in 2018, during the government of Mauricio Macri, a debt that Fernández question severely

Despite announcing these contacts with Argentina, the US did not give more details about the call between Adeyemo, the number two of the Secretary of the Treasury, Janet Yellen, and the Minister of Economy, Martín Guzmán.

Avoid default

Argentina has negotiated since last year with the Fund to refinance debts for about 45,229 million dollars

The Minister of Economy assured this Thursday that the objective of the Government is “have an orderly debt scheme” and so on “avoid a default.

“When we assumed we had a problem of lack of foreign exchange; we had a number of commitments that became unsustainable,” said Guzmán when speaking at the meeting called “Tranquilizing the economy,” organized by the Inter-American Council of Commerce and Production (CICyP).

According to the minister, “there is a sequence of negotiations that has a thought logic; we want to have an orderly scheme with the world; we want to avoid a disorderly default with private creditors.”

“Most countries arrange with the IMF and then the debt; if we did that, we would default “, warned Guzmán. For this reason, he explained:” we wanted a collective involvement of Congress and the whole of society in the process. ”

“We built common sense about what Argentina needs; we had the support of many of you, which was very important,” he stressed.

He also highlighted: “The international community supported us: the G20, the IMF itself, the international academic community”.

“Every tour with the President is about building support that strengthens the Argentine position and that common sense be created with what Argentina needs, “he said.

In this regard, he pointed out that “the same” they want to do “indoors”, for which he highlighted the sending of “a bill to Congress so that the programs with the IMF are approved by Congress; that means that stabilization is political of State “, he completed.