In the midst of negotiations with the International Monetary Fund (IMF) about the massive debt burden, the Argentine government suffered a heavy defeat.
Buenos Aires – In the midst of negotiations with the International Monetary Fund (IMF) over the massive debt burden, the Argentine government suffered a heavy defeat. After more than 20 hours of debate, the South American country’s Chamber of Deputies rejected the draft budget for the coming year on Friday.
Actually, the government wanted to demonstrate unity with a budget approved jointly with the opposition and to go into negotiations with the IMF on a new loan agreement. “If the budget is rejected, the agreement with the IMF will fail,” warned President Alberto Fernández.
Argentina is in the chalk at the IMF with around 44 billion US dollars. Around 19 billion dollars would have to be repaid in the coming year. In view of the sluggish economy and high inflation, the country cannot cope with that. The government is currently negotiating an amendment to the agreement with the Monetary Fund, for example a longer term. (dpa)
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