Argentina must pay up by Friday, says IMF

The International Monetary Fund (IMF) is insisting the Argentine government repay almost $3 billion in debt this week before …

The International Monetary Fund (IMF) is insisting the Argentine government repay almost $3 billion in debt this week before agreeing to sign a new accord, La Nacionis reporting today.

A high-level IMF mission is in Buenos Aires to discuss rescheduling part of Argentina's external debt. Extension of the maturity on $7.3 billion due by mid-year is on the table, according to press reports.

To increase pressure on the Argentine government to meet its conditions, the IMF has postponed until January 23rd a meeting, initially scheduled for Friday, at which the agreement with Argentina was to have been discussed.

The IMF is demanding repayment of money this Friday. The IMF is owed $1 billion; $845 million is owed to the Inter-American Development Bank; and $726 million owed to the World Bank, the reports said.

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President Eduardo Duhalde has said his government will not repay any maturing debt before an accord with the IMF is signed.

"The position of our government is already known: we will release the payments if there are public guarantees of an accord" with the IMF, cabinet secretary Mr Alfredo Atanasof said.

Argentina defaulted on its $141 billion public debt in December 2001 and announced a year later it would not make payments on an $850 million debt with the World Bank.

AFP