Argentine President Nestor Kirchner (left) talks to Economy Minister Felisa Miceli at the Casa Rosada Government House in Buenos Aires, December 15, 2005. - REUTERS
BUENOS AIRES, Argentina (AP):
PRESIDENT NESTOR Kirchner said yesterday that Argentina has repaid its debt to the International Monetary Fund (IMF), a measure meant to help reclaim the country's economic independence, a major Argentine television network reported.
Kirchner had announced on December 15 that his Government would pay off its debt to the IMF from reserves that had risen to nearly US$27 billion. Government authorities had no immediate comment.
Kirchner's announcement was reported by broadcaster Todo Noticias, which added he had disclosed the payment while in his native Santa Cruz province, where he had remained for a long holiday weekend.
Separately, government authorities told independent news agency Noticias Argentinas the debt payment totals US$9.57 billion at current exchange rates.
PAYMENT PLAN DIVIDED ARGENTINA
The pledge to tap Argentine reserves to pay the debt came last month shortly after Brazil announced it too would repay its full $15.5 billion debt to the IMF.
The idea of early repayment had divided Argentines. Some backed the president's effort to free his country from IMF oversight, while others said he should use the money to help Argentina recover from the devastating 2001-2002 economic crisis.
"The president is paying off the IMF, but he should really be paying off the debt to society. This is our money that is going to pay the Fund," said a 65-year-old retiree, Ricardo Bruno, during a recent protest against debt repayment outside the president's offices.
While the IMF itself lauded Argentina's repayment gesture, many like Bruno can't remember when the Government last boosted monthly pension payments, now as little as 390 pesos, that many elderly survive on.
MAKES SENSE
But Mabel Otero, who works in a shop selling leather bags in downtown Buenos Aires, said it makes sense to clear the debt and help Argentina restore its good standing in the world finance community after a record US$100 billion default in 2001.
"I completely agree with the president," Otero said. "The truth is, there's no reason not to pay off the debt now. The day has come, our economy is growing somewhat again and this just leaves one less thing to worry about."
For years, Argentine leaders have complained about IMF oversight and policy prescriptions.
"When the IMF lends you money it has all these strings attached," said analyst Felipe Noguera. "But if you don't owe the IMF money, the IMF can't poke its nose into your affairs even though IMF money is cheaper than the money that's available on the open market."
