Argentina Says Progress Made In IMF Talks --- Unclear Whether Banks Will Be Persuaded to Roll Over Loan Due on Wednesday
Argentina reported "encouraging" progress in its efforts to obtain an International Monetary Fund rescue package. But it wasn't clear whether the apparent progress in the IMF talks would be enough to persuade Argentina's foreign creditor banks to roll over a $125 million loan due Wednesday.</br></br>Argentine Economy Minister Bernardo Grinspun is scheduled to meet with U.S. bankers in New York today, armed with a brief IMF statement acknowledging that "significant agreements" have been reached on a economic austerity program required for an IMF-managed bailout.</br></br>Argentine newspapers hailed the statement as "the green light" that would allow the country's 320 creditor banks to reschedule the $125 million emergency loan due Wednesday. Argentina used the loan to help it meet interest payments on its $45 billion foreign debt at the end of the second quarter.</br></br>However, the statement, released by Mr. Grinspun's aides after three days of talks with the IMF in Washington, didn't say what agreements had been reached, nor did it indicate that the IMF package is close to completion. U.S. bankers have said that Argentina has to have the IMF package in hand by this week for a rollover of the $125 million loan to be possible. The loan is guaranteed by Argentine funds deposited with the Federal Reserve Bank of New York.</br></br>The statement indicated some movement away from the impasse that has stalled an IMF-managed economic-recovery program for nearly two years. The statement said the Argentine government is working on measures to carry out "key policy objectives" of the economic program, the first indication of Argentina's willingness to meet the IMF's stiff conditions at least half-way.