The International Monetary Fund Wednesday October 17 dismissed speculation that it was ready to bolster programs to help the economies of Argentina and Turkey. "It is premature to be talking about that because in neither country are we at that point," IMF spokesman Thomas Dawson told a regular news conference. Both countries were already in programs.
"We know what needs to done," Dawson said. "The issue of increasing programs, accelerating ... is simply not an issue that is on the table at this time," he added. IMF directors last month approved an$8 billion emergency loan for Argentina, bringing the total of IMF financing to Argentina to $21.7 billion.
The IMF held back $3 billion of the total, promising to bring forward that money if Argentina reached agreement on a "market-based operation" to ease its debt burden. Investors have questioned Argentina's ability to repay its $130 billion foreign debt as the crisis-struck economy remains mired in a three-year recession.
Turkish Economy Minister Kemal Dervis promised this month to adhere to an IMF austerity program despite uncertainties in the world economy after the September 11 terrorist attacks on the United States.
Dawson said he expected the Argentine authorities to make an announcement shortly about a reported domestic debt swap, although this appeared unlikely to require IMF funds. He said he believed the Argentine government remained committed to its promise to cut the budget deficit to zero, as stipulated in its IMF-agreed reform program.
"The authorities remain absolutely committed to meeting the commitments under the program and in particular with regard to the budget to the so-called zero-deficit package," Dawson said. "It has obviously been and continues to be a difficult situation but the authorities are committed and are working hard to achieve their goals, which I think have heavily focused on the fiscal side." — (AFP, Washington)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
