The IMF arrives in Argentina to discuss possible financial aid

After several defers, the International Monetary Fund agreed to send a financial committee to discuss with local authorities advances on the negotiations towards a formal agreement, which may let Argentina take off from its worst-ever economical crisis. The new delegation is expected to arrive within this week, and negotiations will last, at least one month, as per local sources estimations.

The Argentine Government looks forward to obtain a financial aid of USD 9 billion to pay its foreign debts with different multilateral credit institutions. This will lead to a formal opening of other credit lines very long expected to struggle against the four years economical depression and a 25% unemployment ratio.

In a press conference to foreign correspondents in Buenos Aires, National Minister of Labour, Graciela Camaсo, confirmed the statistics and explained that only the financial cooperation with International Community, could revert this situation. Also, when asked about plans in office to struggle against what is now a structural problem, she simply replied: “We have nothing, but await for help”.

In the meantime, the Government complied with all requirements imposed and expect a positive answer from the IMF. However, some analysts exclude any possible aid from this institution, as it estimates that the hard policy of the White House in Argentina is the main obstacle to opening new credit lines.

A deal with the IMF will secure, in analysts’ opinion, a slow recovering of the economy, which means: the Government succeeds in stopping the increasing in the value of the US Dollar, which may tend to stabilize in the region of 3 Pesos, with slow jumps until the end of the year to reach 4 Pesos by December 2002. In the financial sector, an eventual flexibility of bank restrictions and no massive shut down of banks. It will also secure funds coming in from Foreign Banks’ Home Offices to guarantee their operative structures.

As for President Eduardo Duhalde, it is the only chance he has to complete his period in office in December 2003. However, some sources of the Congress insist on his calling to anticipated Presidential elections, before the end of this year.

Hernan Etchaleco PRAVDA.RU Argentina