The International Monetary Fund is expected to reach a transitional deal with Argentina tomorrow to try to help it through a financial impasse just four months ahead of the presidential election.
Buenos Aires, which defaulted on its private debt back in December 2001, has been trying to reschedule with international financial organisations the $14 billion in debt falling due before the end of 2003, so far unsuccessfully.
After Argentina announced in December it would not be servicing an $850-million credit with the World Bank, the bank froze all funds earmarked for Buenos Aires.
IMF directors are scheduled to meet formally tomorrow to address the Argentine economic situation as a whole and likely send a team of experts to Buenos Aires to seal a transitional deal, an IMF spokesman said.
Argentine media and some Argentine politicians have said it is a done deal that is just awaiting a political green light from IMF member countries.
At an informal meeting December 20th, directors said they were prepared to agree to review Argentina's request for a transitional deal, at least to ease its debt burden during the campaign ahead of the April 27th presidential election.
IMF members are expected to underscore tomorrow the provisional nature of any such deal and note that it does not mean that any fresh funds are in the pipeline for Buenos Aires.
AFP