The president of Argentina's central bank said yesterday that he has reached an initial accord with creditor banks to refinance about $25 billion in foreign debt before the end of the year.
Enrique Garcia Vazquez, the bank president, said he has "established a chronological program to reach agreement on refinancing" the $25 billion, which accounts for a little more than half of the country's $45 billion foreign debt owed to 320 international lenders. He did not give details of the plan.
"The objective is to reach agreement before the end of the year," Garcia Vazquez said. "We are making every effort to achieve that."
Argentina's 11-month-old civilian government recently sent the International Monetary Fund a draft agreement promising to adopt certain economic austerity measures. IMF approval is necessary to convince banks to extend additional refinancing help and to lend fresh money: approximately $5.4 billion to cover balance-of-payments deficits for this year and next year as well as unpaid foreign debt for 1982 and 1983. Buenos Aires also is seeking a $1.4 billion stand-by loan from the IMF and $200 million more to compensate for drops in exports.
Argentina is $1.8 billion behind on 1982 and 1983 debt payments. More than $25 billion of the debt falls due by the end of this year.