Argentina Seeks Loan Agreement

Argentina plans to seek a new loan agreement with the International Monetary Fund that would allow increased government spending. The country’s current agreement with the IMF stipulates it run a primary surplus of three percent of GDP, but government officials argue that figure is excessive and hope to negotiate it down in discussions with the Fund. President Nestor Kirchner is facing pressure from government employees who are demanding increased wages, even after receiving a 15 percent pay raise last year.