Koehler: Negotiate Argentine letter of intent

IMF managing director Horst Koehler said a team will be sent to Argentina in May to negotiate the letter of intent.

International Monetary Fund managing director Horst Koehler said a team will be sent to Argentina in May to negotiate the letter of intent, which outlines the terms of any new aid program.

"There has to be some technical work to be done but I expect our people to be back in Buenos Aires in May to negotiate the letter of intent," said Koehler.

Koehler maintained, however, that Argentina still needs to adopt key reforms to qualify for a resumption of aid.

The IMF is insisting on "a consolidated fiscal account in Argentina, this is possible, this is needed," Koehler said when asked about the problems with the deficits by the country's 24 provinces that remain a stumbling block to new aid.

Koehler said he made this clear earlier in the day to Argentine Economy Minister Jorge Remes Lenicov.

"I strongly reiterated to the minister that the IMF is committed to conclude on a program," Koehler said. "There should be no doubt about that but of course this conclusion needs to be built on a sustainable approach to the issues."