Argentina wins relief on debt payment

As Argentina struggles to cope with a deepening recession and the depreciation of its currency, the IMF Executive Board agreed on January 16 to extend by one year the due date of a repayment of $933 million under the Supplemental Reserve Facility (SRF) as part of a stand-by credit. Such extensions are allowed under the SRF if repayment would cause undue hardship to a borrower and if the borrower is taking actions to strengthen its balance of payments. On September 7, 2001, the IMF had increased Argentina’s stand-by credit to $21.57 billion.

Abstract

As Argentina struggles to cope with a deepening recession and the depreciation of its currency, the IMF Executive Board agreed on January 16 to extend by one year the due date of a repayment of $933 million under the Supplemental Reserve Facility (SRF) as part of a stand-by credit. Such extensions are allowed under the SRF if repayment would cause undue hardship to a borrower and if the borrower is taking actions to strengthen its balance of payments. On September 7, 2001, the IMF had increased Argentina’s stand-by credit to $21.57 billion.

As Argentina struggles to cope with a deepening recession and the depreciation of its currency, the IMF Executive Board agreed on January 16 to extend by one year the due date of a repayment of $933 million under the Supplemental Reserve Facility (SRF) as part of a stand-by credit. Such extensions are allowed under the SRF if repayment would cause undue hardship to a borrower and if the borrower is taking actions to strengthen its balance of payments. On September 7, 2001, the IMF had increased Argentina’s stand-by credit to $21.57 billion.

On January 16, Argentina named Mario Blejer, a former IMF economist, Central Bank Governor to replace Roque Maccarone, who had resigned in a dispute over bank controls. Blejer, a national of Argentina, joined the central bank in August 2001 as vice president. Prior to taking up his position at the central bank, he held various posts at the IMF, most recently as Senior Advisor in the Asia and Pacific Department. He was also a Senior Researcher at the Center for Latin American Monetary Studies and taught at New York University, Hebrew University of Jerusalem, and Boston University. Blejer received his undergraduate degree from the Hebrew University of Jerusalem and his Ph.D. in economics from the University of Chicago.