New IMF program for Argentina not likely until early 2021 - economy minister

The new program would replace a $57 billion financing agreement with the Fund from 2018. "This is going to be a tough, complex negotiation," Economy Minister Martin Guzman said in an interview with local radio station Metro 95.1.

Argentina and the International Monetary Fund (IMF) will likely not reach an agreement on a new financing program until the beginning of next year, the South American country's economy minister said on Tuesday. The government, having reached a tentative agreement with its creditors last week to restructure $65 billion of foreign debt, is now focused on negotiating a new program with the IMF. The new program would replace a $57 billion financing agreement with the Fund from 2018.

"This is going to be a tough, complex negotiation," Economy Minister Martin Guzman said in an interview with local radio station Metro 95.1. "It will take months. It is even possible that an agreement can only be reached early next year," Guzman said.

Argentina is facing a growing fiscal deficit, high inflation and a skewed foreign exchange rate, made worse under the strain of the coronavirus pandemic. The economy is set to contract more than 10% this year.