RIYADH: IMF Managing Director Kristina Georgieva on Saturday said she had a “very fruitful exchange of views” with Argentine Economy Minister Martin Guzman about putting the country on a path to more sustainable and inclusive growth.
After meeting Guzman on the sidelines of a G20 gathering in Saudi Arabia, Georgieva said the Argentine government had agreed to remain engaged with the International Monetary Fund through formal consultations as it worked to “secure a sustainable and orderly resolution of Argentina’s debt situation.”
Argentina is facing tough negotiations with creditors and the IMF to restructure around $100 billion in debt that the country’s new Peronist government says that it cannot pay unless given time to revive stalled economic growth.
The IMF, which wrapped up a visit to Argentina earlier this week, has said the country’s debt situation had become “unsustainable” and that private creditors would need to make a “meaningful contribution” to resolve the crisis.
Georgieva said she had a good meeting with Guzman on Saturday as finance officials from the world’s 20 largest economies gathered in Riyadh, where concerns about Argentina and other troubled economies were high on the agenda.
She commended the efforts of the Argentine government to put in place policies aimed at stabilizing the economy and reducing poverty, and said the officials also discussed the Argentine authorities’ plans to secure a sustainable and orderly resolution of Argentina’s debt situation.
“In this context, I welcomed the Argentine authorities’ commitment to continue to deepen our engagement including through an Article IV Consultation and steps toward a Fund-supported program in the future. The modalities of these next steps will continue to be discussed,” she said.
An Article IV consultation is an IMF appraisal of a country’s economic and financial policies.
The Argentine government said Guzman’s meeting with the IMF chief “deepened mutual understanding and set the stage for future talks.”
“The minister informed the managing director of the government’s intention to initiate Article IV consultations, which the minister called a valuable step that will deepen mutual understanding between the Argentine government and the IMF on the way toward a new program with the agency,” it said.