Argentina: debt talks should look at foreign firms

Published 10/06/2010, 10:42 AM
Updated 10/06/2010, 10:44 AM

BERLIN, Oct 6 (Reuters) - Argentina wants the tax benefits and loans enjoyed by foreign companies in Argentina taken into account in negotiations with its Paris Club creditors, President Cristina Fernandez said in Berlin on Wednesday.

She told a joint news conference with Germany's Angela Merkel that "Argentina's intention has always been to pay its debts", and that its "position on the participation of the International Monetary Fund in the negotiations is well known".

The government in Buenos Aires has refused an IMF review of its economy since 2006, arguing that IMF mismanagement helped to precipitate the 2001-2002 economic crisis that led to a default on about $100 billion of sovereign debt. [ID:nN09191313]

Argentine officials have denied media reports that they are divided on whether to mend fences with the IMF to refinance its Paris Club debt and further improve access to financing after a $12.3 billion swap of defaulted debt earlier this year.

The country is trying to restructure debts of about $7 billion to the Paris Club which includes Germany, other major European powers and the United States among others, but Fernandez said this should take into account foreign firms' activities in Argentina.

"We believe the renegotiation of this debt with the Paris Club should also contemplate investments by Paris Club countries in Argentina, where companies get fiscal benefits and loans that allow these European companies to send profits home," she said.

"We think this should be taken into account because unlike bonds which are really financial loans, we all know the Paris Club loans are aimed above all at company activities via investment agencies," said the Argentine president.

She did not elaborate any further on the proposal.

(Reporting by Stephen Brown; editing by Patrick Graham)

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