[R-P] FMI vs ARGENTINA

[Mario Jose de lima]

News Brief No. 02/56
June 28, 2002  International Monetary Fund
700 19th Street, NW
Washington, D.C. 20431 USA



IMF's Köhler Welcomes Progress in Talks with Argentina
Horst Köhler, Managing Director of the International Monetary Fund (IMF),
made the following statement in Washington today after discussions on June
27-28 between IMF Management and staff, and visiting Argentine officials,
led by Minister of Economy Roberto Lavagna:

"IMF Management and staff, and the visiting Argentine officials, led by
Minister of Economy Roberto Lavagna, have held productive meetings. Two
legal issues, concerning the reform of the Insolvency Law and the repeal of
the Economic Subversion Law, have been satisfactorily resolved; and Minister
Lavagna has assured us that substantial further progress may be expected
next week on the outstanding issues concerning the central government's
fiscal agreements with the provinces. Consequently, Argentina and the IMF
are entering an active negotiating relationship, focusing on four areas:

Finalizing the fiscal framework;

Addressing the critical problems with the banking sector;

Developing an effective monetary anchor for the authorities' economic
program. The Argentine authorities and ourselves are giving consideration to
identifying a group of experienced policy makers that might assist Argentina
and the Fund in the design of a monetary framework; and

Reinforcing Central Bank independence.

We will pursue discussions actively in all these areas, including through
staff missions to Argentina to accelerate momentum toward a Fund-supported
program."




IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs: 202-623-7300 - Fax: 202-623-6278
Media Relations: 202-623-7100 - Fax: 202-623-6772