Candace Vargas
Eco 357L
"Argentine Mistrust of IMF’s Attitude Spurred It to Issue Its Own Declaration"
by Lynda Schuster in Wall Street Journal-June 18, 1984
Main Point:
The article discusses the mistrust and betrayal Argentina feels at the hands of the IMF.
Summary:
Argentina doesn't think the negotiations are being taken seriously, and in an attempt to assert their position they sent a letter of intent to the IMF. The letter outlines Argentina's attempts to solve their own economic dilemmas, with or without the support or consent of the IMF.
The approaching deadline to pay its interest on its debt is causing all parties to evaluate their standings in these procedures. The banks that are in line to loan Argentina the money to pay the interest will not do so unless Argentina comes to an agreement with the IMF. The IMF will not come to an agreement unless they feel the Argentine government makes a proposal to meet some economic goals. Argentina will not negotiate their proposed intentions. A stalemate seems to be ensuing.
Argentine President, Raul Alfonsin, was infuriated that IMF officials appeared to be stalling. The IMF and other officials feel that Alfonsin is making promises that he cannot keep, such as wage increases. Many feel that Argentina's submission of its' letter of intent, without IMF approval, will cause many more problems to come.