Amadeusz Juskowiak

Argentina could suspend debt payments deputy

Argentina could suspend payments on its foreign debt if creditor banks reject a 215 billion dlr loan request to meet 1987 growth targets ruling Radical Party Deputy Raul Baglini told a local radio station

Argentina does not discard the use of a moratorium if the negotiations do not produce a result that guarantees the growth of the country he added

Baglini an observer at Argentinas negotiations in New York with the steering committee for its 320 creditors banks told the Radio del Plata in a telephone interview that the banks were divided on the loan request

Baglini said that as a result todays scheduled second day of talks had been postponed

He said Argentina was prepared to follow the example of Brazil which last week declared a moratorium on interest payments of a large portion of its 108 billion dlr foreign debt

Argentinas prime objective in renegotiating the debt was to maintain growth which has been targeted at four pct in 1987 Baglini said

Debtor nations should not have to take from their own pockets that is their commercial balance to meet interest payments he added