IMF delays mission to Argentina

The International Monetary Fund says it won't send a mission to Argentina until the federal government there and provincial governors reach a budget agreement.

Argentina's government and opposition governors have been discussing economic austerity measures proposed by President Fernando de la Rua last week.

The government is asking them to support measures to abolish a state-run pension plan, reform the retirement and tax systems and freeze public spending for five years.

But the provincial governors are demanding more funds for social programmes.

The IMF mission -- which was due to arrive today Friday in Buenos Aires -- was expected to finalize a multi-billion financial rescue package. The reforms supported by the IMF, aim to allay investors' fears that the government will not meet its 2001 debt obligations after two years of economic recession and slow growth.

From the newsroom of the BBC World Service