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IMF Sees Upside in Delaying Argentina Deal After October

  • Government wants to avoid unpopular moves before key election
  • Removal of campaign pressure could allow more room for talks
International Monetary Fund IMF
Photographer: Andrew Harrer/Bloomberg
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Officials at the International Monetary Fund see some benefit in delaying a $45 billion agreement with Argentina after the nation’s midterm election in October, with talks yielding little progress six months after they began, according to people familiar with the situation.

While IMF negotiators prefer to hash out a deal with Argentina as soon as possible, some see a silver lining in the government’s procrastination. Argentina could take more ownership and make bigger policy commitments once the pressure of a key legislative vote is off, three people familiar with the talks said, declining to be named because discussions are private.