The IMF mission is in Buenos Aires to carry out the first evaluation of the recent program, with the aim of enabling US $ 2 billion. They are part of the credit of US $ 20,000 million requested by Caputo that aggravated the country’s dependence with the international body. The review of the goals includes an objective of accumulation of reservations that is breached, but the fund is giving clear signs of support to the brutal adjustment of Milei so it is expected to grant a forgiveness (Waiver) and redoubled its demands in relation to the reforms against the great majorities, in the labor, pension and tax field.
At the beginning of the year the government was on the verge of an acute crisis due to lack of dollars to continue paying the external debt and only resorting to a new program with the International Monetary Fund (IMF) gave it air to build precarious stability. The agreement includes a goal of accumulation of reservations (a greater income of dollars to the country than its discharge) for US $ 5,000 million, of which consultants estimate that the government only obtained US $ 1,000.
The background of the Fund is headed by Bikas Joshi who had been the deputy director of the mission in the country in December 2024. The economist born in Nepal has written works in which he recommends putting limits to the entry of capital to avoid financial turbulence with inflationary consequences. Quite the opposite of what Caputo is doing that released the flow for speculators and is taking debt to usurious rates.
Argentina closed its last agreement with the agency based in Washington – the number 23 – in April, to refinance the previous agreement for US $ 44,000 million signed under the presidency of Macri and endorsed by the Peronist government that followed it when making a new program with the fund. A spiral of indebtedness that has been condemning the country to be under the demands of the IMF.
For his part, Luis Caputo, faithful to his traditions, is willing to increase the debt at any cost in order to achieve at least part of the reserves that are missing by the financial route. One of the measures in this regard was the issuance of a new bonus, Bonte 2030, which pays in pesos, but is bought by speculators with dollars; With a rate greater than 30%, something almost impossible to find in the world. It also completed a new repo loan for US $ 2 billion with a group of international banks with an interest rate of 8.25% per year in dollars.
If they turn to that route it is because the late exchange rate to contain inflation favors the country’s exit. From January 2024, the first entire month of the management of Javier Milei, until last April, the balance of consumption abroad for tourism and card purchases is negative at US $ 9.3 billion. This number contrasts with what generates the energy balance, which adds in the same period US $ 5,940 million. The consumption abroad is carried out all the dollars that Vaca Muerta generates, at the cost of aggravating the climatic crises and destroying ecosystems of our country.
With the country over -indebted this model is unfeasible. Only in January of this year the government paid US $ 4,338 million in interest and amortizations for bonds in foreign currencies. The Congress Budget Office estimates that this amount must be added to another US $ 7,891 million from February to July, including payments for more than US $ 1 billion in interest to the IMF itself.
Kristalina Georgieva comes from taking pictures with a pin of a chainsaw and calling to vote for freedom to advance, but in exchange for the funds they expect Milei to initiate a plan of structural reforms that involve strong attacks on the great majorities. These are the regressive reforms in labor, pension (retirement) and tax.
Milei, Caputo and the IMF are mortgaging the country that already accumulates an unpayable fraudulent debt, to try to bring votes in the October elections. A policy that can only increase delay and national dependence. The fight against adjustment and for the sovereign ignorance of external debt is essential to prevent the crisis from paying workers.
Source: www.laizquierdadiario.com
