FILE PHOTO: Argentina’s President-elect Alberto Fernandez appears on as he attends the oath of workplace of Tucuman Governor Juan Manzur, in San Miguel de Tucuman, Argentina October 29, 2019. REUTERS/Agustin Marcarian
BUENOS AIRES (Reuters) – U.S. President Donald Trump known as Argentine President-elect Alberto Fernandez to congratulate the center-left politician for profitable Sunday’s election and focus on the South American nation’s troubled financial system.
Fernandez despatched a tweet saying Trump informed him he had “instructed the Worldwide Financial Fund to work with us to resolve the issue of our debt.”
The IMF prolonged a $57 billion credit score line to the recession- and inflation-racked nation final yr when a run on the peso forex sparked considerations a couple of potential sovereign bond default.
“I thanked him for the gesture and informed him of my intention to keep up mature and cordial relationship with the USA,” the tweet stated.
The White Home stated in a press release the 2 leaders mentioned bilateral relations and that Trump expressed U.S. assist for serving to Argentina “overcome financial challenges”.
The IMF deal, negotiated with Argentina’s outgoing President Mauricio Macri, has been in limbo for the reason that Aug. 11 major election, which Fernandez gained by a higher-than-expected margin. The first consequence prompted a steep sell-off in Argentine asset costs, and revived debt fears.
The peso steadied this week, helped by central financial institution interventions, after Fernandez’s Oct. 27 election win. The forex closed Friday at 59.745 to the U.S. greenback.
Reporting by Hugh Bronstein, Maximilian Heath and Marina Lammertyn, Further reporting by Eric Beech and Mohammad Zargham in Washington, Enhancing by Alistair Bell, Sonya Hepinstall and Jacqueine Wong