Argentinian President Alberto Fernández addressed the nation on Friday to confirm that the country has reached an agreement with the International Monetary Fund (IMF) to restructure its USD 44.5 billion debt dating back to 2018. The issue was one of the center-left administration’s top priorities.
Mr. Fernández called it a “reasonable” debt repayment, through which Argentina will “be able to access new financing” and seek a “solution.” The deal was confirmed on the exact day that a USD 730 million loan repayment was due — as part of the USD 19 billion Buenos Aires intended to pay in 2022.
Also according to Mr. Fernández, “compared to previous [deals] Argentina has signed, this one does not include restrictions that would delay our development,” he said, mentioning the new format could help his government avoid cuts to public spending, which will be crucial to Argentina’s period of economic recovery.
The South American nation is currently enduring one of its worst economic slumps, with inflation rates surpassing 50 percent a year, poverty and unemployment on the rise, and the melting down of the local currency — in 2021, the Argentinian Peso was the world’s second worst-performing currency, behind the Turkish Lira.
Despite the celebrations, the government didn’t go into any further details about the new agreement. That task will be given to Economy Minister Martín Guzmán, who will explain the deal in the coming days.