Argentina to Pay Entire IMF Debt 4 Years After Default (Update)

Dec. 15 (Bloomberg) -- Argentina said it will pay back its entire $9.8 billion debt to the International Monetary Fund, severing 22-year-old ties with the lender that the government blames for its 2001 debt default.

President Nestor Kirchner, who at rallies and speeches this year has called IMF officials ``rude'' and demanding, said at a press conference in Buenos Aires the government will make the payment after three years of economic growth bolstered foreign currency reserves. The economy grew 9.2 percent in the third quarter on a surge in public spending, the government said today.

Kirchner, 55, vowed to take the decision on several occasions this year to ensure the administration isn't dependent on policies endorsed by the Washington-based lender, including spending caps and higher utility rates. The announcement comes two days after neighboring Brazil said it would repay its $15.5 billion IMF debt.