BUENOS AIRES: Argentine Economy Minister Martin Guzman said Friday night that a $45 billion debt deal with the International Monetary Fund would not be changed, following a meeting with the director of the IMF, Kristalina Georgieva.
“We are not going to change the objectives of the program with the IMF,” Guzman told local media.
The South American country’s centre-left Peronist government led by President Alberto Fernandez reached a staff-level deal with the international lender in early March to avoid a default.
The deal sets out a new 30-month funding schedule to replace a failed US$57 billion program from 2018 that the grain-producing nation was unable to repay after years of recession, d galloping inflation and capital flight.
However, Guzman warned without giving further details that there will be a shift in focus to focus on the social safety net due to the fallout from the Russian invasion of Ukraine which triggered global inflation.
Argentina has long suffered from extremely high inflation. However, the war increased price spikes in Argentina as well as much of Latin America. Argentina’s inflation in 2021 exceeded 50%.
(Reporting by Maximilian Heath; Editing by Andrea Ricci)