
Argentina's new pro-business President Mauricio Macri urged Congress on Tuesday to approve a deal ending a 15-year default nightmare and lambasted what he called the shambles left by his leftist predecessor.
In a combative speech to a legislature dominated by opponents, Macri said it was now up to them to repair the damage he said was done by the refusal to negotiate with international creditors before.
"I trust responsibility will prevail," he said.
A deal was announced Monday to settle the conflict, which dates back to 2001, when Argentina defaulted on almost $100 billion in debt. Nearly all the country's creditors at the time accepted to write off 70 percent of their bonds, but a handful of holdouts demanded full payment in a row that crippled Argentina's access to financial markets.
Finance Minister Alfonso Prat-Gay said that Buenos Aires would pay an estimated $6.5 billion in total to holdout creditors, including four hedge funds named in the $4.65-billion settlement announced Monday.
"Not resolving this conflict cost Argentinians dearly," Macri told Congress, urging lawmakers to "achieve the necessary consensus."
However, in addition to getting congressional approval, Macri still needs US federal Judge Thomas Griesa to lift an injunction that effectively has blocked Argentina from accessing international credit markets while the dispute lingered.
After a two-hour hearing in New York Tuesday, Griesa said he was postponing his decision.
For Macri, the debt deal is part of an overall bid to reverse his predecessor Cristina Kirchner's legacy in Latin America's third-biggest economy.
"The first thing to recognize is that we are not doing well, even if that hurts," he told Congress.
He said he had inherited "a state plagued by cronyism, waste, and corruption."
Describing a bloated public sector, which he said was used to mask true unemployment, and inflation forecast to hit around 20 percent this year, Macri said Kirchner left Argentina "in a mess and badly run."
A US-educated businessman, Macri, 57, took the helm in Argentina in December, following an election in which he won 51 percent of the vote.
GMT 09:54 2018 Tuesday ,23 January
Davos-bound bosses very upbeat on world economyGMT 09:37 2018 Tuesday ,23 January
Former KPMG executives charged in accounting oversight scamGMT 22:49 2018 Sunday ,21 January
Brexit special trade agreement possibleGMT 22:46 2018 Saturday ,20 January
China economy rebounds in 2017 with 6.9% growthGMT 22:37 2018 Saturday ,20 January
GE takes one-off hit of $6.2 bn linked to insurance activitiesGMT 19:58 2018 Saturday ,20 January
Watchmakers hope to make Chinese market tickGMT 19:54 2018 Saturday ,20 January
US shutdown unlikely to harm debt rating: FitchGMT 19:50 2018 Saturday ,20 January
EU's Moscovici slams Ireland, Netherlands as tax 'black holes'

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Send your comments
Your comment as a visitor