Press Release No. 04/196

Press Release: IMF Executive Board Extends Argentina's Repayment Expectations

September 17, 2004

IMF policy on repayment expectations allows for such extension where the member's external position is not sufficiently strong for it to repay early without undue hardship or risk. Because a decision to approve an extension of repayment expectations is a technical one, it is not based on an assessment of the authorities' economic program. During the four-month period in question, Argentina will still face obligations to the Fund of about SDR 1 billion (about US$1.46 billion). The authorities are committed to remaining current in payments to the Fund.

During the meeting, Argentina was urged to decisively address all the outstanding structural issues in their program, and to complete a comprehensive and sustainable debt restructuring. Contacts between the IMF and the authorities on the policy framework going forward will continue.