Buenos Aires, 28 January 2022 (TDI): Argentina faces imminent debt repayments to the International Monetary Fund (IMF) but concerns have risen whether the country will be able to honor this agreement as talks ensued to negotiate the loan.

The country is hoping to work out a deal on $40 billion worth of loans. Argentina has to pay back the IMF $730 million on Friday and then an additional $365 million the next week. The government has yet to confirm whether this will be the case or not.

Juan Manzur, the Cabinet Chief iterated that there was an “eagerness” and “political decisiveness” to repay the loan. Late last year the country erupted in protests as people took to the streets to prevent the government from signing debt-restructuring deals.

The deal meant Argentina would pay $19 billion each in 2022 and 2023. People argued the government would not be able to manage such a deal citing increases in interest rates, utilities, layoffs which would immensely harm the people. These talks ultimately fell through, but the repayment of loans now present similar prospects.

“What is going to happen, we will know in the next few hours. Argentina’s government is willing to reach an agreement to pay in a sustainable manner.” -Gabriela Cerruti, Presidential spokesperson.

Protests erupted once again on the streets of Buenos Aires on Thursday. Many people blame the IMF’s strict measures, which lead to the 2001-2002 economic crisis, with many wanting to completely ignore the loan calling it a “scam”.

Argentina’s 2018 Loan

In 2018, under the presidentship of Mauricio Macri, Argentina received the largest loan from the IMF. It was worth $57 billion. Since then the country has struggled to implement the social and economic restructuring laid out by the fund. Negotiations to repay the loans have been ongoing but have not reached a definitive conclusion.