IMF, Argentina move toward repairing rift

WA S H I N G T O N : 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 US$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 20132015 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. — AFP