Press Release No. 20/95

Statement by IMF Managing Director Kristalina Georgieva on Argentina

March 20, 2020

At the request of the Argentine authorities and reflecting close collaboration with them, the International Monetary Fund (IMF) released today a technical note prepared by IMF staff on Argentina’s public debt sustainability. The technical note sets out staff’s views on a feasible macroeconomic framework and on Argentina’s debt-carrying capacity over the medium-to-long run. Together, these two elements allow for a quantification of the envelope of debt relief that is required, in staff’s view, to restore debt sustainability with high probability.

Ms. Kristalina Georgieva, Managing Director of the IMF, issued the following statement on publication of the note:  

“Caring for Argentina’s most vulnerable people and addressing the country’s difficult economic situation has been at the top of President Alberto Fernández’s priorities since he took office. Tackling these issues has become even more pressing in light of the coronavirus pandemic and its significant health and economic impact. Our technical note is designed to provide guidance to stakeholders on Argentina’s complex debt situation by offering our views on Argentina’s debt-carrying capacity in the medium to long-run.

“In particular, staff’s analysis shows that considering this debt-carrying capacity, and the existing debt burden, a substantial debt relief from Argentina’s private creditors will be needed to restore debt sustainability with high probability. We look forward to a collaborative process of engagement between Argentina and its private creditors with a view to reaching an agreement that commands high creditor participation.

“In parallel, my staff and I continue to engage closely with the Argentine authorities and Economy Minister Martin Guzmán and his team, during these difficult times. The Argentine authorities are taking important steps to contain the spread of the coronavirus and have underscored their commitment to protecting those at highest risk from its most damaging health and economic effects.

“As we continue to advance in our engagement and work, I would like to stress that our priority is and remains helping support Argentina’s recovery with a particular focus on those that have the least and are most exposed. Ultimately, our objective is to pave the way for a stable and prosperous economy that can create jobs and raise living standards for the benefit of all Argentines.”