Argentina's new finance minister said on Wednesday it was imperative to resolve the country's legal dispute with U.S. creditors over unpaid debt because financing of the country's fiscal deficit this year may depend on progress on the issue.
Solving the more than decade-long debt battle would enable Argentina to return to global credit markets and stop financing the deficit with the printing presses, a tactic which helped fuel double digit inflation under the previous government.
Finance Minister Alfonso Prat-Gay said the negotiations would be tough but it was in the country's interests to reach a deal.
The previous government's failure to do so had cost the economy, he said, with creditor claims in New York having risen to $9.9 billion from $2.943 billion originally.
"We're not going to ignore the issue. It's not our mess but we have no problem in cleaning it up," Prat-Gay told a news conference.