Page 12 - aruba-today-20200213

A12 WORLD NEWS
Thursday 13 February 2020
Argentina and IMF discuss debt in shadow of 2001 crisis

By DÉBORA REY and darkness lie ahead," said
CHRISTOPHER TORCHIA Damaris Rolón, a protest
Associated Press leader. He said the IMF
BUENOS AIRES, Argentina should get out of Argentina
(AP) — Argentina has been and that the government
here before: recession, shouldn't pay back its debt.
growing poverty, high in- A new IMF program would
flation, billions of dollars in reassure bondholders that
debt, a looming deadline Fernández has a good
for repayment and simmer- plan to balance the bud-
ing anger toward the Inter- get, lower inflation and
national Monetary Fund. pay debts, said Benjamin
This is a big week for one Gedan, director of the Ar-
of Latin America's biggest gentina Project at the Wil-
economies, which is host- son Center in Washington.
ing an IMF team for talks "Politically, it might be ap-
on restructuring $44 billion pealing for Fernández to
in debt owed to the lend- demand concessions not
er. All involved are anxious only from private creditors,
to avoid a replay of 2001, but also from the IMF," Ge-
when Argentina defaulted dan wrote in an email to
on about $100 billion in People eat food served up by members of political parties and social movements as part of their The Associated Press.
debt during the worst eco- protest against the visit of an International Monetary Fund (IMF) delegation, featuring a banner that "After all, the Fund is
nomic crisis — and there reads in Spanish "The debt is with the people, not the IMF," in Buenos Aires, Argentina, Wednesday, loathed by Argentines who
have been many — in its Feb. 12, 2020. remember its role in the
history. Associated Press 2001 economic catastro-
Once again, Argentina It's a balance for President president, Cristina Fernán- get the latter's green light phe," he said. "But a clash
doesn't have the cash to Alberto Fernández, who dez de Kirchner. to pursue a renegotiation with the IMF would be
pay creditors, and is des- seeks a deal with the IMF "It will be a frantic negotia- with private bondhold- foolhardy, and immensely
perate for relief from its to- that does not alienate his tion to put an end to aus- ers, all by 31 March 2020," complicate Argentina's ef-
tal debt burden, also val- leftist base, as represented terity, restructure commit- Verisk Maplecroft, a con- forts to claw its way out of
ued at around $100 billion. by his deputy and former ments with the fund, and sulting company based in its latest debt morass."
Britain, said in a report. President Fernández took
Nicaragua creates new fuel firms "I think the fund is willing to office in December af-
help Argentina, but in order ter an election win that
after December U.S. sanctions to do that, it's necessary for spooked markets fearing
the Argentine authorities a return to leftist economic
to steer away from inter- policies of the past. Dur-
By GABRIELA SELSER would “guarantee better banisa was founded the ventionist and heterodox ing her presidency, Cristina
Associated Press service, high-quality and same year and was linked policies and show clear Fernández de Kirchner had
MANAGUA, Nicaragua efficiency,” through spe- to Venezuelan state oil willingness and ability to im- implemented intervention-
(AP) — Nicaragua’s Par- cialization by the different company PDVSA, also prove the fiscal situation in ist policies that were wide-
liament approved the companies. sanctioned by Washing- no more than two to three ly blamed for economic
creation Tuesday of four Members of the opposi- ton in 2019. years," said Alberto Ramos, problems.
state companies that will tion, who have accused Days after the Decem- chief Latin America econo- Yet the predecessor of the
handle the importation, Ortega of running the pe- ber sanctions were an- mist for Goldman Sachs. current president, Mauri-
storage, distribution and troleum sector without be- nounced, Ortega’s gov- At the time of the 2001 cio Macri, had fallen into
sales of oil and gas, two ing accountable to Par- ernment nationalized the default, the relationship disfavor after obtaining a
months after the country’s liament, saw self-interest company and took over between Argentina and record financing deal with
main energy company behind the measure. its assets — a move that the IMF grew increasingly the IMF in 2018. Argentines
was sanctioned by Wash- Creation of the new com- was also fast-tracked by strained. chafed under the austerity
ington for allegedly laun- panies is an attempt “to Parliament. The IMF later acknowl- measures required as part
dering money for fam- evade the U.S. Treasury The four new entities are edged shortcomings, in- of the agreement, the cur-
ily members of President Department sanctions, in known as Enigas, Eni- cluding a failure to identify rency plunged and daily
Daniel Ortega and then case they sanction them planh, Enicom and Enih, vulnerabilities in the Argen- life got worse.
sold to the government again,” said lawmaker the latter of which focuses tine economy during its Kristalina Georgieva, the
days later. Jimmy Blandón of the op- on exploration and exploi- boom years. IMF's managing direc-
The measure passed with- position Liberal Constitu- tation of hydrocarbons. Martín Guzmán, the econ- tor, said her organization
out debate, analysis in tionalist Party. Sandinista lawmaker Ed- omy minister, planned to shares the same goals as
committee or consultation Treasury levied the sanc- win Castro said that in the offer details of a plan for Argentina's government.
with other government tions Dec. 12 on the fuel case of Enih, the govern- debt restructuring in an "In this regard, the mea-
or business entities under distributor DNP, accusing ment offered incentives address to Congress later sures adopted thus far go
rules for urgent legislation it of being used by mem- for exploration on Nica- Wednesday. in the direction of restoring
in a Parliament controlled bers of the Ortega family ragua’s Pacific coast, Some demonstrators who macroeconomic stability
by Ortega’s Sandinista for their personal enrich- though without identify- favor a hard line on Argen- and protecting the poor,"
party. ment. ing what company ben- tina's creditors marched Georgieva said after meet-
Wálmaro Gutiérrez, a San- DNP, along with Albanisa, efited. toward the local offices of ing Argentina's economy
dinista who heads the had commercialized “It is possible that if we the IMF in Buenos Aires in minister in Rome last week.
legislature’s economic crude from Venezuela do not find oil, at least protest. Yet many Argentines and
commission, called the since 2007, the year Orte- we may find gas,” Castro "When workers in Argen- foreign investors wonder:
decision “wise” and said it ga returned to power. Al- said.q tina hear the term IMF, they is a 2001-style scenario un-
know that long periods of folding all over again?q