March 1 (Bloomberg) -- Argentine President Cristina Fernandez de Kirchner said the global financial crisis should provide momentum to change how international organizations provide aid to emerging market economies.

Fernandez called on the International Monetary Fund and World Bank to extend aid to countries without conditions, a position she said she’ll push at the annual meeting of the world’s 20 biggest economies in London on April 2. She said developing countries have been punished by a financial system in which regulations “only apply to weak and emerging economies.”

“There needs to be reform of the multilateral lending agencies, which have until today operated by forcing restrictions on emerging markets,” Fernandez said in Buenos Aires during a 70-minute speech to Congress to kickoff Argentina’s legislative session. “The IMF and World Bank need to be changed into instruments of financing without conditionality.”

Additional financing for emerging markets could help South America’s second-biggest economy overcome slowing growth as auto factories and metal producers slash output and tensions rise with farmers over exports and taxes. Industrial production declined 6.1 percent in January from the previous month and auto sales fell 39 percent from a year earlier.

New tools are needed to help the government “intervene” in the economy to protect jobs and maintain economic growth, Fernandez said, without elaborating. Reports last week that the government may take over the country’s grains trade could spark social unrest, farmers said, a year after farm protests paralyzed the country and prompted food shortages.

Layoffs, Bankruptcies

Fernandez criticized Argentine farmers for not selling grains stored from previous harvests, saying such a move would help boost growth.

“Every day we read news about more banks collapsing, layoffs, and bankrupt factories,” Fernandez said. “Who today can afford not to sell their goods?”

The leaders of Argentina’s biggest farm groups are scheduled to meet for a second round of negotiations with Production Minister Debora Giorgi on March 3. Plans were announced Feb. 24 to eliminate dairy taxes, a move which will cost the government 130 million pesos ($36 million) in lost revenue.

To contact the reporter on this story: Bill Faries in Buenos Aires at wfaries@bloomberg.net

Last Updated: March 1, 2009 11:52 EST