Argentina’s debt load is unsustainable, the International Monetary Fund said after completing a week of meetings in the country, paving the way for the government to ask private bondholders to take on losses as it prepares to renegotiate its obligations. A “meaningful contribution” will be necessary from private bondholders to restore the country’s debt sustainability, the IMF said at the end of its first technical mission in Buenos Aires under Alberto Fernandez’s presidency.
Argentina president Alberto Fernández announced a 13% increase in pensions for low-income people (below AR$20,000) and two other allowances for families and children that will go into effect next month. Higher pension bands will increase between 9.8% and 3.8%. A new program that will make free 170 medications for pensioners will also be launched.
Argentina President Alberto Fernández begins his second international trip as head of state visiting Italy, Germany, Spain, and France, seeking support from their leaders for debt renegotiations with the International Monetary Fund (IMF). In his first scale in Italy he will meet with fellow countryman Pope Francis at the Apostolic Palace, and afterwards with Italian President Sergio Mattarella, before heading to Berlin.
Argentine government ratified that it will use the loans for $6 billion approved by the Inter-American Development Bank (IDB), the World Bank and CAF, for infrastructure works and development programs. President Alberto Fernández will accept these loans approved during the government of Mauricio Macri “for their low cost of financing comparing to what the country could get in the markets,” official sources explained.