IMF ends visit to Argentina, government worried about savings
\ndrain<\/p>\n
Agence France-Presse
\nBeunos Aires<\/p>\n
An IMF delegation ended its visit here Tuesday, warning that
\nthe door would be closed on international financial aid to
\nArgentina unless the government imposes a series of tough fiscal
\nmeasures.<\/p>\n
And for the government of President Eduardo Duhalde, lack of
\naccessibility to fresh funds will dry up its potential to fight
\nthe expected bout of inflation, with annual forecasts riding at
\n60 percent.<\/p>\n
An Economy Ministry source said Argentina is only 200 million
\npesos short of the 3.3-billion-peso ceiling on the money supply
\nthis year, making the need for fresh sources of funding
\nincreasingly urgent.<\/p>\n
The government's problem is exacerbated by an ongoing drop in
\nrevenue collections, the source said, speaking on condition of
\nanonymity.<\/p>\n
Earlier, Economy Minister Jorge Remes Lenicov announced at a
\nnews conference that Argentina was closing the gap on reaching
\nits much-needed deal with the International Monetary Fund.<\/p>\n
\"We are far closer to reaching an agreement than we were a
\nmonth ago ... but we are continuing to work on the issue of
\ndeficit targets,\" Remes said after meeting with the IMF's head of
\nspecial operations, Anoop Singh, leading the fund's mission to
\nArgentina.<\/p>\n
Remes said outstanding differences between the two sides
\ncenter on Argentina's target for its primary surplus -- excluding
\ndebt servicing -- which the government is seeking to reduce to
\n0.8 or 0.9 percent of gross-domestic product from the IMF's
\nrecommendation of 1.4 percent.<\/p>\n
Duhalde is, meanwhile, caught between demands of the fund and
\nother economic groups that Argentina apply free-market policies,
\nand those of an increasingly desperate population.<\/p>\n
Almost half of the 36 million Argentines now live in dire
\npoverty as the nation weathers one financial strain after
\nanother.<\/p>\n
Drastic hardship measures late last year led to riots and the
\nouster of two governments followed by the removal of the dollar-
\npeso peg by Duhalde's government.<\/p>\n
The ensuing devaluation of the peso brought a severe hike in
\nthe price of essentials such as bread and petrol. The combination
\nof all this and strict limits imposed on bank withdrawals has put
\na heavy load on the public and the government.<\/p>\n
Duhalde stopped short later Tuesday of signing a decree that
\nwould have halted the flow of bank funds back to account holders,
\nmade possible by a series of court cases.<\/p>\n
The president said the decree bore the hallmarks of
\nunconstitutionality, hours after a top government official warned
\nthat his plan to revive Argentina's moribund economy was in
\ndanger if the drain on the country's savings accounts continues.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/imf-ends-visit-to-argentina-government-worried-about-savings-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}