Reuters: Argentina won't repay IMF debt till recession over, VP Fernandez says

14:55, 09 February 2020
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Argentina is facing a default / REUTERS

"The first thing we have to do in order to be able to pay is to exit the recession," Fernandez de Kirchner said at a presentation of her book "Sinceramente" (Sincerely) at Havana's international book fair, according to Reuters.

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"If there is a recession no-one will pay even half a cent and the way you exit recession is through a lot of state investment."

Argentina needs to restructure US$100 billion in sovereign debt with creditors, including part of a US$57 billion credit facility that the IMF extended the country in 2018.

Dealings with the IMF are key as Argentina hopes to avoid a default amid a currency crash, steep inflation and a contracting economy. An IMF technical mission is expected in Buenos Aires next week to discuss obligations owed to the fund.

Fernandez de Kirchner said Argentina should get a "substantial haircut" on its IMF debt.

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