Argentina to Resume Auctions of Treasury Bills

Argentina will resume regular Treasury bill auctions on May 8, two weeks after the postponement of a planned sale sent bonds plunging to their lowest level since 1998, Economy Minister Domingo Cavallo said. Cavallo credited the International Monetary Fund for his decision to return to the market, saying he has almost “completely closed” an accord with the IMF to back his economic program and open the way for billions of dollars in loans. Argentina postponed the auction scheduled for last Tuesday of up to $750 million in bills and bonds after talks with banks broke down on fears the government might not be able to service its $128-billion debt. Investors pushed Argentina’s debt costs higher than Russia’s. Now, Argentina and the IMF have agreed in principle to resume a $14-billion loan program that was derailed when the government failed to meet budget-deficit targets, said Horst Koehler, the fund’s top official.