Argentina Expects to Qualify for Brady Plan in '91
BUENOS AIRES - President Carlos Menem said Argentina could benefit from a Brady-type plan for debt reduction as early as November.
"It's very probable that, in our visit to Washington in November, we will be able to announce Argentina's incorporation into the Brady Plan," he told reporters at Government House.
Argentina, however, has yet to start formal talks with creditors of its $33 billion commercial debt, on which it has piled up about $7.5 billion in interest payment arrears.
Its whole foreign debt stands at $62 billion.
Conflict Over Interest
Argentina is paying banks $60 million a month, a fraction of the interest its commercial debt accumulates each month.
Bankers have said that they expect Argentina to settle the issue of interest arrears before starting talks rescheduling the debt's principal.
"Our economy is giving plenty of evidence that it can qualify for the plan," Mr. Menem said.
The Peronist government is bringing Argentina's once-rampant inflation down to levels similar to those in industrialized countries and increasing its budget surplus by improving tax collection and streamlining its public sector. [Tabular Data Omitted]