Mexico Urges Argentina to Accept IMF Debt Deal

Mexican President Andres Manuel Lopez Obrador on Thursday urged Argentina to accept a new $45 billion deal with the International Monetary Fund (IMF) to avoid defaulting on its debt.

“This is a matter for the Argentineans, but if they asked for my opinion, I would say that they accept the payment extension,” Lopez Obrador said in a press conference.

Last week, Argentina landed a preliminary agreement with the IMF for a 30-month Extended Fund Facility (EFF) which will push back sovereign debt repayments until 2026 to 2034. It still needs approval from the IMF board and Argentina’s Congress.

A default on its debt would not “help Argentina or the rest of the world’s economies,” said Lopez Obrador, reading from a letter addressed to Argentine President Alberto Fernandez and dated Mar 5.

“Honorable people know you received a bankrupt country because of your predecessor’s irresponsible decision for Argentina to take on unlimited debt in complicity with foreign governments and financial organizations,” the letter added.

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