IMF, Ar­gentina move to­ward re­pair­ing rift

The Pak Banker - - FRONT PAGE -

The In­ter­na­tional Mon­e­tary Fund and Ar­gentina took a step to­ward re­pair­ing a rift that saw the coun­try be­come the first mem­ber cen­sured by the IMF. The IMF re­leased sev­eral of its re­cent as­sess­ments of the Ar­gen­tine econ­omy that were held back due to the rift, and said Buenos Aires had in­formed it of plans to al­low a for­mal IMF re­view, known as an Ar­ti­cle IV con­sul­ta­tion, later in 2016.

That could re­store the coun­try's stand­ing at the global cri­sis len­der a decade af­ter the last Ar­ti­cle IV re­view, usu­ally an an­nual event for IMF coun­try mem­bers. It also comes three years af­ter the Fund of­fi­cially cen­sured Ar­gentina for not liv­ing up to its obli­ga­tions to the Fund, par­tic­u­larly in pro­vid­ing ac­cu­rate data on eco­nomic growth and in­fla­tion.

The shift came on the same day a ten­ta­tive deal was an­nounced to set­tle the fight over bil­lions of dol­lars in bond pay­ments be­tween hedge fund cred­i­tors and Ar­gentina.

The govern­ment of Pres­i­dent Mauri­cio Macri, which has moved quickly on eco­nomic re­forms since tak­ing of­fice in De­cem­ber, agreed to pay $4.65 bil­lion to the cred­i­tors who had sued the coun­try in New York af­ter it de­faulted on its debt in 2001.

The doc­u­ments re­leased by the IMF were in­for­mal up­dates on the coun­try's econ­omy made in 2013-2015 for the IMF board. Nor­mally the IMF does not re­lease such re­ports but said it did so at the re­quest of Macri's govern­ment. The IMF said it be­lieves the govern­ment "is work­ing to re­solve the con­sul­ta­tion de­lay" and has con­firmed its plans for an Ar­ti­cle IV re­view later this year.

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