IMF urged to support fair agreement for Argentina

ICFTU urges IMF to support a fair agreement for Argentina

Brussels, 19 March 2004 (ICFTU Online): Ahead of discussions on the extension of the International Monetary Fund's (IMF) loan agreement with Argentina, the international trade union movement today urged the IMF to support the Argentine government in its efforts to arrive at an arrangement with international creditors that does not threaten the country's current fragile economic recovery.

The Argentinean economy has experienced severe recession, culminating in the country defaulting on its international debt repayments in early 2002. Unemployment remains high and poverty rates are still far above their pre-crisis levels.

Following a visit to Argentina which involved a series of meetings with President Kirchner and the ICFTU-affiliated CGT, the ICFTU General Secretary Guy Ryder underlined the crucial role that the IMF has in ensuring further economic progress in the Latin American country. "The Argentine government is committed to arriving at a fair agreement with creditors and one which will encourage rather than suppress economic recovery. The manner in which the IMF responds to this challenge will dictate public perception of the institution and whether it is seen as supporting or undermining social progress", Ryder stated.

In a letter ( http://www.icftu.org/displaydocument.asp?Index=991219099&Language=EN) to the Acting Managing Director of the IMF, Anne Kruger, the ICFTU encouraged the financial institution to progress towards establishing a new process for resolving sovereign debt crises through a binding debt restructuring mechanism that is transparent and fair to all parties.

The ICFTU represents over 150 million workers in 233 affiliated organisations in 152 countries and territories. ICFTU is also a member of Global Unions: http://www.global-unions.org

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