Argentina moves to the final of the IMF without a single sign

As the March deadline approaches Argentina’s multi-billion dollar debt repayment by the IMF, the country is at risk of being cut off by international financial institutions and back to isolation as the remaining Peronist government struggles to secure new aid.

Martín Guzmán, Argentina’s finance minister and IMF chief negotiator, told regional governors in Buenos Aires last week that there was “no agreement” with the Washington lender, after 18 months of incomplete negotiations.

Guzmán’s suggestion to the governors may call for a more efficient budget by 2027, while the IMF demands a slowdown in funding and support. He also said he should continue to use the central bank printing press to raise the money for another five years, which could lead to higher inflation.

Guzmán said the main point of non-compliance with the fund was on the so-called “financial system” – how long and how to reduce costs in order to budget. He did not provide details of how the budget will run by 2027.

The demonstration “confirms the suspicion of Argentine officials about the need to cut spending to reduce downtime,” said Fernando Sedano, an economist at Morgan Stanley, while pointing out the “significant differences” that need to be closed to “achieve goals”.

When camels Continuing with the IMF, the government should also find a way to encourage a new troubled conference to approve its $ 40bn restructuring plan that it has loaned to the rest of the world, as part of an agreement. Debt repayment of $ 57bn in 2018.

Even getting political leaders to come and discuss the matter has been difficult. The three regional governors and the mayor of Buenos Aires rejected a government request last week to talk about debt repayment, criticizing President Alberto Fernández for calling the meeting a chance to have a photo with his finance minister.

Argentina is due to pay the IMF $ 2.8bn at the end of March, and experts see no way but to find a new agreement with the lender because the government does not have international payments. Foreign investment has fallen below $ 6.9bn, according to Morgan Stanley, the only $ 400m liquid.

Many financial experts agree that repaying a debt with a pension can be dangerous. It could reduce the amount of debt Argentina earns from international lenders and seriously damage the IMF’s reputation as a lender.

With traffickers fleeing Argentina after a temporary failure in 2020, any disputes could erupt in the country – a G20 member and exporter, who has been released 21 times in 60 years – a global economic consortium.

Government is wasting time and resources

Guzmán, who has been claiming that the deal provides for air travel and private debt repayment, also attacked the IMF on Wednesday, saying the fund is more focused on restoring business confidence than restoring real wealth.

“Of course, we are working to create more confidence in the market but the first thing is to drive real wealth,” he said.

The growing government in 2041 dropped to 33 cents a dollar in the worst one-week fall since September after Guzmán indicated that the March agreement was not imminent. Just a day later, the central bank raised interest rates for the first time in a year by two to 40 percent, which is interpreted as a fund.

Although Fernández’s administration is able to resolve the issue with the fund, any agreement must be approved by congress, with the opposition gaining significant results in last year’s election.

Finding an alliance has been difficult, not because Peronists have repeatedly attacked opponents to sign original IMF, and the council is reluctant to share any political debates.

In one demonstration of differences between the state and the congress, members of the lower house rejected the state budget for 2022 in December for failing to report on inflation and inflation, following a 19-hour debate.

The Fernández government will also have to deal with mature people in their churches who refuse to cut their funding and government subsidies. He believes the original IMF agreement has violated fund rules – the IMF denies this – and that the lender should provide the best possible care in Argentina for any new developments.

Economists see the moment of reckoning approaching. For Alberto Ramos, a Latin American economist at Goldman Sachs, there is now a “great opportunity” for Argentina to repay the debt and the fund.

The ongoing dispute between Fernández’s management over the right financial situation shows that there is a “significant decline” in economic reforms and reforms that underpin the IMF’s credible program, Ramos added.

“The [finance] The Minister does not know what he wants, what are his goals? “Said Carlos Melconian, a former president of the Bank of Argentina.

The government’s submission Wednesday shows more “restrictions on its content, than the actions of international agencies,” journalist and professor Carlos Pagni wrote in The La Nación newspaper.

Although the government and the IMF want to unite, there is still “significant disagreement over economic policy”, according to Daniel Kerner of Eurasia Group, a political analyst. IMF officials in December demanded a “sound” fiscal plan, with a commitment to reduce spending, reduce shortfalls and reduce inflation, which rises to 50 percent annually.

Buenos Aires economist Fernando Marul showed little signs of success in December. Argentina paid $ 1.9bn to the fund on December 21, in addition to payments last year. “It would be very costly for the government, once it had paid the dues, if their opinion had not changed,” he said.

As tensions between Peronists and opponents deteriorate, the economy suffers.

Central bank funds have fallen sharply. Savings have fallen below $ 7bn and more than $ 1bn have left private banks in the last two months alone, market-recognized shows.

At least 70 percent of the decline in 2021 was funded by printing presses, according to estimates, where the IMF wants the country to slow down. “The government is running out of time and space,” said Ignacio Labaqui, chief executive officer of Medley Global Advisor in Buenos Aires.