[stop-imf] ICFTU urges IMF to support a fair agreement for Argentina

[Robert Weissman]

ICFTU urges IMF to support a fair agreement for Argentina

Brussels, 19 March 2004 (ICFTU Online): Ahead of discussions on the
extension of the International Monetary Fund's (IMF) loan agreement with
Argentina, the international trade union movement today urged the IMF to
support the Argentine government in its efforts to arrive at an
arrangement with international creditors that does not threaten the
country's current fragile economic recovery.

The Argentinean economy has experienced severe recession, culminating in
the country defaulting on its international debt repayments in early
2002. Unemployment remains high and poverty rates are still far above
their pre-crisis levels.

Following a visit to Argentina which involved a series of meetings with
President Kirchner and the ICFTU-affiliated CGT, the ICFTU General
Secretary Guy Ryder underlined the crucial role that the IMF has in
ensuring further economic progress in the Latin American country. "The
Argentine government is committed to arriving at a fair agreement with
creditors and one which will encourage rather than suppress economic
recovery. The manner in which the IMF responds to this challenge will
dictate public perception of the institution and whether it is seen as
supporting or undermining social progress", Ryder stated.

In a letter
(http://www.icftu.org/displaydocument.asp?Index=3D991219099&Language=3DEN)
to the Acting Managing Director of the IMF, Anne Kruger, the ICFTU
encouraged the financial institution to progress towards establishing a
new process for resolving sovereign debt crises through a binding debt
restructuring mechanism that is transparent and fair to all parties.

The ICFTU represents over 150 million workers in 233 affiliated
organisations in 152 countries and territories. ICFTU is also a member
of Global Unions: http://www.global-unions.org

For more information, please contact the ICFTU Press Department on +32 2
224 0206 or +32 476 621 018.

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Ms. Anne Krueger
Acting Managing Director
International Monetary Fund
700 19th Street
Washington, DC 20431
USA

18 March 2004

Dear Ms. Krueger,

IMF Lending Agreement with Argentina

I am writing to you concerning the discussions that will be taking place
shortly at the IMF concerning the extension of the IMF=92s loan programme
with Argentina. Earlier this month I travelled to Argentina and had
meetings both with our affiliate, the CGT, and with government leaders,
including President Kirchner.

As you know, Argentina is still only emerging from the very severe
recession that ended in an international debt default in early 2002.
Although the economy has experienced two years of positive growth,
unemployment remains high, and poverty rates are still much above the
pre-recession level. For Argentinian working people and their families
the situation is critical. Sustained and faster economic growth is
essential for Argentina to continue on the path of recovery and the IMF
has a crucial role to play in ensuring further progress. The IMF=92s
continued lending to Argentina is obviously one of the key conditions
for the growth to continue.

My exchanges with President Kirchner and other government officials left
me in no doubt as to the seriousness of the Argentine government in
respect of its commitments to the IMF and its intention to pursue an
arrangement with bondholders that is fair to them, and does not endanger
the fragile recovery underway in Argentina. I believe that this has also
been reflected in recent developments. I therefore urge the IMF to
support the Argentine government in this approach and to offer the
necessary assistance for Argentina to continue on the current path of
economic growth. I believe that action taken now stands to have a
significant impact on the perception of the IMF=92s role by the public at
large and by the trade union movement, both in Argentina and beyond.
Moreover it is crucial to safeguarding both the welfare of the
Argentinian people and the long-term capacity of the country to pay its
debts and sustain economic and social development.

Finally, I would encourage you to continue to use your influence to
accelerate work towards establishing a new process for resolving
sovereign debt crises through a binding debt restructuring mechanism.
The painful experience of Argentina demonstrates how badly such a
mechanism is needed, as you yourself recognized when launching the
proposed SDRM in 2001. The ICFTU and our Global Union partners will
continue to offer its support to a new mechanism that is transparent and
fair to all parties.


Yours sincerely,


General Secretary