Argentina's Fernandez won't seek remaining $11 billion from IMF Macri bailout

[sandensea]

Argentine President-elect Alberto Fernández said Tuesday he would he will not request the remaining $11 billion from a record, $57 billion credit line with the International Monetary Fund (IMF).

“What I want, is to stop asking (for money) and for them to let me pay,” said Fernández, who takes office on December 10.

“I have an enormous problem. And I'm going to ask for $11 billion more?”

There was no immediate response from the IMF, which granted outgoing President Mauricio Macri the bailout after a carry-trade debt bubble known locally as the “financial bicycle” collapsed in April 2018.

Amid the worst recession in two decades, Macri on October 27 became the first Argentine president to lose re-election.

Fresh faces

The IMF yesterday named a new head of mission in Argentina, Venezuelan-born head of the IMF's Open Economy Division Luis Cubeddu, to replace Roberto Cardarelli.

Cubeddu, 53, was part of the IMF's Argentina office between 2002 and 2004 - in the aftermath of the collapse of similar IMF-sponsored policies in 2001.

Among the Argentine officials he met at the time was Alberto Fernández - who served as cabinet chief for then-President Néstor Kirchner.

Kirchner rejected the IMF's austerity policies, and amid a strong recovery went on to pay Argentina's entire $9.5 billion IMF debt in 2006.

Fernández now faces a $45 billion IMF debt - plus another $160 billion in other public foreign debt, most of which is due within the next four years.

At: https://www.batimes.com.ar/news/economy/fernandez-says-he-wont-seek-remaining-us11-billion-from-imf.phtml

Argentine President-elect Alberto Fernández greets U.S. Ambassador Edward Prado yesterday.

Fernández inherits twin economic and debt crises from his IMF-backed predecessor, Mauricio Macri - whom the IMF granted a record, $57 billion bailout against the advice of its own economists, and reportedly on U.S. President Donald Trump's orders to bolster Macri's re-election chances.

Trump however, according to Fernández, has “instructed the IMF to work with (Argentina) to resolve the debt problem.”

[OnlinePoker]

1. This guy won't be around long with that kind of attitude

These 2nd world countries need to stay beholden to their masters. The thought that they can handle things without outside assistance is preposterous. /s

[sandensea]

3. Here's hoping Trump adopts a more pragmatic approach - even if it is to please Big Oil

Currently, as you may know, there's a quiet but intense competition between U.S. and Chinese oil giants for the "Vaca Muerta" oil/gas field - the 3rd richest unconventional (fracking) field on Earth.

The Argentine Government owns those fields - but has been leasing them out since 2013; Chevron was the first one in, and has made a fortune.

My impression is that Trump understands that Fernández would rather not gravitate toward China - but will if the U.S. pressures the IMF to become unreasonable in debt rescheduling negotiations (Argentina can't pay $45 billion by '23, and they know it), or if the vulture funds are allowed to take Argentina's foreign bondholders hostage again (as they did in 2014).

If Trump, however, adopts a more pragmatic, cooperative policy (could it be!?) toward Argentina and its debt crisis, he'll surely find a far more responsible and trustworthy partner in Fernández, than he did in that con-man Macri.

[Kurt V.]

2. smart move. the imf has so many countries on the hook through bad advice.

[sandensea]

4. The International Misery Fund, as they call it.

Encourage countries to create Bush-style debt bubbles - and once said bubble pops, lend them the needed funds to allow the elite to dollarize their assets and offshore them.

The country is left bankrupt, and with huge IMF and bondholder debts to boot.

Then move in, and offer "lifesaving" loans - if they'll only adopt GOPee-style policies (tax cuts for the rich, social spending/public works cuts for the rest, and of course privatizations).

But as they say, fool me once...