Latin America Leaders Ask Biden to Back Argentina in IMF Talks

A group of Latin American presidents on Thursday urged US President Joe Biden to support Argentina in ongoing negotiations over its $44 billion program with the International Monetary Fund.

(Bloomberg) — A group of Latin American presidents on Thursday urged US President Joe Biden to support Argentina in ongoing negotiations over its $44 billion program with the International Monetary Fund. 

The leaders from Brazil, Bolivia, Chile, Colombia, Mexico and Paraguay made their plea in a letter addressed to Biden today, according to a tweet from Argentina’s President Alberto Fernandez, who said “I deeply appreciate the support.”  

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“We ask with respect and affection that you support Argentina in the negotiations that it is carrying out with,” the IMF, the letter said. “We seek a solution that permits Argentina’s growth, job creation and the increase in its exports. All of those conditions are necessary for the country, in return, to be able face the deadlines of said loan.” 

Bloomberg News previously reported the Biden administration would support speeding up disbursements from Argentina’s $44 billion program with the International Monetary Fund, if the nation’s authorities can successfully negotiate a new schedule with the lender, according to US officials familiar with the matter. The Argentine government plans to make the case to the IMF that the severe drought the nation is suffering is beyond its control, and it needs the funds as soon as possible to tame the crisis.

Economy Minister Sergio Massa is expected to travel to Washington once an agreement to modify targets in the program is drafted. Argentina had two upcoming payments this week to the IMF totaling $2.7 billion, but Massa’s team elected to bundle them together and pay at the end of June, according to an IMF official who requested not to be named to discuss ongoing talks. 

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