BUENOS AIRES, Aug 27 — Argentina formally opened consultations with the International Monetary Fund on Wednesday to agree new terms on the repayment of a US$57 billion (RM237.4 billion) bailout agreed in 2018.

President Alberto Fernandez had spoken with IMF chief Kristalina Georgieva “to begin negotiations aimed at reaching a new understanding with the organisation,” Fernandez’s office said in a statement.

In a statement released by the IMF, Georgieva said Fernandez “notified me of the request by his government to start discussions on a new IMF-supported programme.”

After talks she described as “very constructive and positive”, she said “we stand ready to play our role”.

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“We look forward to deepening our dialogue on how we can best support the government’s efforts to manage the impact of the pandemic, jumpstart growth and job creation, and reduce poverty and unemployment while strengthening macroeconomic stability for the benefit of all Argentines.”

Fernandez told Georgieva of the need “to work together with the IMF to sort out the disorder that we inherited from the previous government” of his liberal predecessor Mauricio Macri.

Fernandez put repayments to the Washington-based lender on hold and renounced outstanding tranches of the bailout when he assumed the presidency last December, saying Argentina already had enough debt.

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Argentina “to a great extent, has already put its accounts in order with its creditors and will start working today to do so with the international credit organisations, especially the IMF,” the centre-left president said.

Earlier this month, Fernandez’s government reached a deal with three major creditor groups to restructure a US$66 billion debt after months of strained negotiations and missed deadlines.

The bonds represent roughly a fifth of the country’s US$324 billion debt, which amounts to around 90 per cent of its GDP. — AFP