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Last Updated: Friday, 4 March 2005, 17:40 GMT
IMF ready to meet with Argentina
Nestor Kirchner
President Nestor Kirchner considers the debt swap a success
The International Monetary Fund (IMF) has praised the success of Argentina's debt swap and said it will soon begin talks with the country.

Argentina's debt restructuring offer closed last Friday and the government has announced a 76% acceptance rate.

"It has been a very good result. It is a very important step for Argentina's economy," IMF deputy managing director Agustin Carstens said.

The IMF earlier stressed it was too early to say negotiations had resumed.

Argentina defaulted on its debt three years ago, the biggest sovereign debt default in modern history.

Argentina and the IMF suspended negotiations last August over a $13bn (6.7bn; 9.8bn euros) loan agreement until the debt was restructured.

Now that the debt has been successfully restructured, Economy Minister Roberto Lavagna is set to meet IMF managing director Rodrigo Rato next week.

IMF spokesman Thomas Dawson said on Thursday that this will be a resumption of conversations but it is still too early to say it is a formal resumption of negotiations.

Outstanding creditors

Rodrigo Rato, managing director of the IMF
The IMF's Mr Rato (pictured) will meet Argentina's economy minister next week
Among the issues analysts expect Mr Rato and Mr Lavagna to discuss is that of the creditors that rejected the Argentine restructuring offer.

Within this context, IMF director Pier Carlo Padoan has told Reuters news agency that Argentina still has to solve this issue before it can consider its debt problems to be solved.

Mr Padoan represents Italy on the board of the IMF and his country is home to the majority of Argentina's foreign creditors.

The Argentine government has said in the past that this was its last offer to creditors.

Now the investors who rejected the Argentine offer may try their luck with the courts or accept the loss of the investment.

But Mr Padoan has insisted that "Argentina has to clarify how to deal with the excluded creditors, it has to find a way that respects the conditions of good faith".


SEE ALSO
Argentine restructuring 'success'
04 Mar 05 |  Business
Argentina takes hard line on IMF
28 Feb 05 |  Business
Argentina pins hopes on debt deal
14 Jan 05 |  Business
Timeline: Argentina
31 Dec 04 |  Country profiles
Q&A: Argentine debt swap
13 Jan 05 |  Business

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