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| Economy Minister:Argentina Opposes IMF Role In Paris Club Settlement |
| Buenos Aires, 13.11.2010 |
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| BUENOS AIRES (Dow Jones)-October 12,2010
Argentina Economy Minister Amado Boudou on Tuesday said the government continues to oppose the involvement of the International Monetary Fund in settling its outstanding debts with Paris Club nations.
"This is a problem that we inherited and to solve the Paris Club [debt] we don't need the Fund. We want the Fund to stay away," Boudou told reporters at the sidelines of an event.
"There is no reason for the Fund to participate in this issue. We don't owe the Fund anything," he said.
Argentina owes about $7.5 billion to developed countries grouped together in the so-called Paris Club of creditor nations, which includes Germany, Italy, Japan, the U.S. and the Netherlands.
Argentina's government can make a one-time payment to the Paris Club to settle the debt, or it can ask to reschedule payments. Paris Club rules, however, stipulate that before debt can be rescheduled, the borrower must secure a loan program with the IMF.
Settling that debt could reopen Argentina's access to funding from the export credit agencies of Paris Club members, which has been cut off since the country defaulted on $100 billion in 2001.
President Cristina Fernandez said last week in a visit to Germany that she wants the tax breaks received by foreign companies operating in Argentina to be taken into account in settling the Paris Club debts.
"We believe the renegotiation of this debt with the Paris Club should also contemplate investments by Paris Club countries in Argentina, where companies get fiscal benefits and loans that allow these European companies to send profits home," she said.
Fernandez and her husband, former president Nestor Kirchner, have been vocal critics of the IMF, whose policies, they say, contributed to the default and the destruction of Argentina's industrial base.
Argentina has refused to submit its economic policies and data to a periodic review by the IMF since 2006, the same year that then-president Kirchner paid off ahead of schedule about $9.8 billion in debt owed to the multilateral lender.
-By Ken Parks and Alberto Messer, Dow Jones Newswires; 54-11-4103-6740, ken.parks@dowjones.com
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