Press Release No. <a name="P16_75"></a>05/153

Mr. Rodrigo de Rato, Managing Director of the International Monetary Fund (IMF), issued the following statement today:

"The Argentine authorities have informed Fund management of their desire to start negotiations with the IMF on a new economic program.

"The program supported by the Fund arrangement approved in September 2003 was not fully implemented because of a decision by the Argentine authorities to delay key structural elements of the program until completion of their debt restructuring. The authorities now believe that it is time to work toward a new IMF-supported program.

"On June 20, the Board completed the Article IV consultation with Argentina. The summing up of the Board discussion, which is expected to be released soon, contains the Board's sense of the key economic policy priorities facing Argentina in order to sustain high growth and reduce poverty further. I believe it also conveys the main elements of policies that could form the basis of a Fund-supported program. I also understand the Argentine authorities will soon approve the publication of the underlying staff report, which provides the IMF staff's view of Argentina's economic outlook.

"Because any new arrangement will involve exceptional access to IMF resources, the Fund's policy will require early consultation with the Executive Board on any new program negotiations. Accordingly, I intend to consult with the Board in the very near future regarding the broad outlines of a program that could be supported by an IMF arrangement. This Board meeting will also be an excellent opportunity for the Argentine authorities to convey to Executive Directors their own views about the content and timing of key measures of a future program. Such a Board meeting is expected to be in July."

"After the Executive Board meeting next month, we expect to engage the Argentine authorities in discussions regarding a new IMF-supported program."