Posted on 02/06/2020 5:56:42 PM PST by marshmallow
VATICAN CITY (Reuters) - Argentina on Wednesday told the International Monetary Fund that Buenos Aires cannot continue servicing unsustainable debt, as the IMF encouraged it to enact efficient restructuring policies.
IMF Managing Director Kristalina Georgieva and Argentine Economy Minister Martin Guzman exchanged views at the conference in Vatican City hosted by Pope Francis.
Guzman told the conference Argentina would under no circumstances continue servicing debt that was unsustainable and that pushed the country deeper into recession.
“We are going to be very firm on that,” he said.
He balked at the 9% interest rate that Argentina is scheduled to pay to the Paris Club of country creditors in 2020 and 2021.
“That is not only unsustainable, it marks a very bad anchor for the rest of the restructuring,” Guzman said.
He emphasized his opposition to fiscal austerity as a recipe for over-indebted countries and called for clear international rules to govern sovereign debt crises.
“Fiscal austerity in situations of unsustainable debt doesn’t work. On the contrary, it’s self-defeating,” he said.
(Excerpt) Read more at reuters.com ...
Gotta love the new “fiscal austerity” term...used to be “balance your budget”.
Every ten years, every ten years. And then, in five years it will start all over again. When will the rest of the world figure out this scam?
Here are words that will not be uttered: “Communism has never worked.”
How many times now in the past years has Argentina defaulted? How are the lenders who still lend gobs of money to Argentina making money? They must be because they keep lending the money.
Because the US is still servicing the debt.
True, but it is not sustainable on the path we are on.
I answered the question as asked.
Yep, we are “only” spending 10% of the Federal budget on interest at record low interest rates...($575 billion a year)... the national debt continues to rise...higher interest rates will cause some serious hurt.
Yep, there is no way out of this. Total cumulative debt is much higher than is acknowledged. With “off budget expenditures,” and a host of other bookkeeping slight of hands, we owe close to 200 trillion. See Mark Levin’s book on this.
He emphasized his opposition to fiscal austerity as a recipe for over-indebted countries and called for clear international rules to govern sovereign debt crises.
“Fiscal austerity in situations of unsustainable debt doesn’t work. On the contrary, it’s self-defeating,” he said.
...
He’s right. Economic growth and productivity should come first.
They should consider massive cuts in regulations, too, since that would give the government a maximum increase in revenue.
Do a government audit to catch thieves and reduce waste.
Pointing the finger at the IMF and getting the population good and ripping mad at them is what keeps stumblebum Argentine Socialists in power.
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