Argentina to Seek New Extended IMF Facility to Replace Failed Program, Says Guzman

Argentina will seek an Extended Fund Facility (EFF) from the International Monetary Fund (IMF) to replace a failed $57 billion facility, Economy Minister Guzman said on Monday, potentially buying the South American country more time to make repayments, Reuters reported. The EFF is a longer-term program that typically requires more economic reforms than a standby agreement. Argentina would expect to repay the IMF between four and a half years and 10 years after the start of the agreement, Guzman said, adding that he aimed to secure a new deal by April. A longer-term deeper structural reform package as part of an EFF could be a positive signal for investors who are looking to the government for a commitment to a sustainable economic plan. Argentina has recently emerged from a sovereign default after restructuring almost $110 billion in foreign currency bonds. Read more