Argentine Economic Minister talks with IMF

Argentina's economic chief, seeking new financial help for his beleaguered country, continued discussions last night with International…

Argentina's economic chief, seeking new financial help for his beleaguered country, continued discussions last night with International Monetary Fund officials.

"Economy Minister Roberto Lavagna has assured us that substantial further progress may be expected next week," IMF Managing Director Horst Koehler said in a statement. "Consequently, Argentina and the IMF are entering an active negotiating relationship focusing on four areas."

Those areas include establishing a budget framework, ending a banking freeze and reinforcing the independence of the central bank, Mr Koehler said.

Mr Lavagna arrived in Washington on Thursday for two days of meetings with IMF, World Bank and US Treasury officials. Originally scheduled to return to Buenos Aires yesterday, he has extended his trip one more day, Economy Ministry spokesman Sergio Federovisky told reporters.

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Mr Lavagna said the most immediate goal of his meetings in Washington was to get IMF's board of directors to consider a one-year postponement of a $1.7 billion payment to multinational lending agencies due in mid-July.

"During the negotiations with IMF, which would start next week, we will talk about next year's payments," Mr Lavagna told reporters at the Argentine embassy.

AP