Mexican president urges Argentina to accept IMF debt deal

A man walks past posters while demonstrators protest outside the National Congress, as members of the parliament debate the government's agreement with the International Monetary Fund (IMF), in Buenos Aires, Argentina March 10, 2022. REUTERS/Agustin Marcarian

Mexican President Andres Manuel Lopez Obrador on Thursday urged Argentina to accept a new $45 billion deal with the International Monetary Fund (IMF) instead of defaulting on its debt.

Argentina agreed on a 30-month extended fund facility (EFF) with the IMF late last week, replacing a failed 2018 program, which pushes repayments back until 2026-2034. It needs approval from the IMF board and Argentina's Congress.

"This is a matter for the Argentineans, but if they asked for my opinion, I would say that they accept the payment extension," Lopez Obrador told a regular news conference.

FILE PHOTO: Mexico's President Andres Manuel Lopez Obrador looks on during a news conference at the National Palace in Mexico City, Mexico, February 10, 2022. REUTERS/Edgard Garrido/File Photo

Defaulting on its debt would not "help Argentina or the rest of the world's economies," said Lopez Obrador, an ally of Argentine President Alberto Fernandez.

"Honorable people know you received a bankrupt country because of your predecessor's irresponsible decision for Argentina to take on unlimited debt in complicity with foreign governments and financial organizations," Lopez Obrador said, reading from a letter addressed to Fernandez and dated March 5.

(Reporting by Valentine Hilaire; Editing by Anthony Esposito and Lisa Shumaker)