Waiting for negotiations with the IMF, the markets were reheated on Monday. The Central Bank (BCRA) had to sell USD 56 million, which add to the USD 474 million on Fridaydemanded by the banks that got rid of the bonds in short -term pesos. Parallel dollars rose for the third consecutive day and exceeded $ 1250 for the first time in six monthsthe gap with the officer approached 20%.
According to the BCRA The gross reserves closed the day at US $ 27,333 million, the lowest value in 6 monthsIn addition to the exchange intervention, two international credit agencies were made payments El BID and BIRF for about US $ 310 million.
Despite debt payments, according to data from the Ministry of Finance, In February, the gross public debt of the National Treasury continued to increase: it increased by USD 3,362 million and reached the USD 471,150 million record.
The debt continues to grow that “the central administration made public debt payments for a total equivalent to US $ 9,703 million, of which 91% was made in national currency and 9% in foreign currency. Of the total amount, US $ 8,891 million were allocated to the payment of capital and US $ 812 million to the payment of interest.”
To deal with these payments, refining and extending the maturities, the government issued new and more public titles and letters: “Instruments such as capitalizable letters (LECAP) were offered to fixed rates with different deadlines, as well as bonds adjustable for inflation and official dollar” details a report from the Congress Budget Office (OPC). And he adds for payments, “in total, including Bonce, Bonte and AT, in the month they overcame commitments in national currency for $ 9.11 billion and $ 114 million of interest.”
Short leg lies
In the midst of negotiation with the IMF, Caputo left on Monday to celebrate a financial surface of $ 310,726 million, however, for an accounting maneuver in the national accounts, the “interest” payments of the “Caputo Bonds” are not recorded. The ASAP (Argentine Budget Association) explains “that in the execution of the budget the capitalizable interests corresponding to the letters of the National Capitalizable Treasury (LECAPS) issued since April 2024, as well as the Fiscal Liquidity Letters (LEFI) in the month of July 2024, as part of the operating operation of the BCRA debt to the Treasury. If those instruments had the most conventional scheme. They register during the deadline in which the debt is in force), the financial result would be lower. ”
To the shortage of dollars for debt payments and artificial containment of the exchange rate, it is also added that the possible “rebound”, a growth limited to the strong fall of the economic activity of 2024, causes an increase in imports (with a “cheap” dollar) and more pressure to the scarce currency of the country.
The government’s economic enclosure leads to the climate of despair to Milei that tries to take a new agreement with the fund to pure decreed to provide “fresh dollars.” Currencies that did not enter the productive route despite the thousands of miles traveled by Milei and their advisors, of encounters with magnates of which only supported Twits and crypt scams brought.
The DNU for the agreement with the IMF does not provide too many details, the same fund has not yet announced anything concrete and puts more tension in the markets. The truth is that for the great majorities, a new program with the fund will bring more indebtedness, adjustment and misery. This Wednesday 19, Milei will try to take the first step in advancing with a new program that implies 10 more years of submission with the agency. It is urgent to face it in the streets.
Bonus
On March 23, the pension moratorium expires with which 85% of older adults retired. The unions and centrals must advance the strike that convened late for the month of April. The rights and pockets of millions are in games. Let’s go to the streets.
The IMF demands the end of the retirement moratorium. Who supports the agreement with the Fund, directly attacks retirees.
— Myriam Bregman (@myriambregman) March 17, 2025
Source: www.laizquierdadiario.com
