Latin America Advisor

Claudio Loser, president of Centennial Group Latin America and former head of the Western Hemisphere Department of the International Monetary Fund: “A new agreement would be Argentina’s 12th with the IMF since the mid-1980s, a record for the region. This agreement is crucial to consolidate Argentina’s financial sustainability, and it would help build confidence about its economic policies, creating the basis for renewed official and private flows. Within an Extended Arrangement, the Fund may offer financing that effectively restructures obligations for the next three years ($44 billion) and extends payments for up to 10 years. Given its multilateral nature, the IMF cannot provide debt forgiveness to Argentina, with a high, even though declining, per capita income. Financial support is granted only in the context of an economic program. The IMF strongly supported Argentina in the private debt renegotiation process and agrees that the fiscal adjustment should be gradual, given the Covid pandemic. The government has announced a…”