Argentina's opposition candidate says the country cannot pay IMF loan back, wants renegotiation

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Argentina's opposition candidate says the country cannot pay IMF loan back, wants renegotiation
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Alberto Fernandez rocked markets last week when a poll installed him as a likely successor to Mauricio Macri.

Argentine Economy Minister Nicolas Dujovne resigned on Saturday and has been replaced by Hernan Lacunza.

In particular, the bond and currency markets reflected investor unease at the move away from Macri's market-friendly policy agenda. Macri borrowed $57 billion from the IMF last year on the agreement he would implement austerity measures to trim the country's huge debt and make the repayments. On Monday morning, the cost of insuring Argentinian debt via a five-year CDS rocketed 319 basis points, according to financial data specialist IHS Markit. A CDS is a financial agreement that the seller of the CDS will compensate the buyer in the event of a default.Fernandez told the paper that he would help Macri renegotiate the terms of repayment with the IMF, adding that the current terms were "harmful" to the country.

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