This Tuesday, the International Monetary Fund (IMF) published a short statement informing that “the technical staff of the IMF and the Argentine authorities reached a technical agreement on a comprehensive economic program”, although it did not give details of it. That is, it is hidden in what the list of economic conditions that will seek to download on social majorities would consist.
In the midst of global crisis and instability and the bleeding of dollars from the Central Bank, the Government drags at the foot of the IMF to achieve transitory relief in “the markets” in the electoral career, in exchange for a brutal delivery.
According to the statement, the agreement “could be supported by a 48 -month agreement within the framework of the IMF extended service for a total of 20,000 million dollars (15,267 million DEG or 479 percent of the fee), subject to the approval of the IMF Executive Board of Directors”, which would meet in the coming days.
Likewise, the agency emphasizes that “the agreement is based on the impressive initial progress of the authorities in the stabilization of the economy, based on a solid fiscal anchor, which is generating rapid deflation and recovery of the activity and social indicators. The program supports the following phase of the stabilization and reforms of Argentina, whose objective is to consolidate the macroeconomic stability, streng Generate solid and more sustainable growth, while managing the most complex world context. “
The statement does not mention how the disbursement calendar, nor the exchange rate level agreed with Caputo would be structured. The IMF demands a devaluation or other exchange scheme, which in turn implies more inflation and adjustment of popular income.
Another unknowns is Trump’s pressure for Argentina to cancel the swap with China. In the last week Trump’s special envoy for Latin America, Mauricio Claver Caronehad implied that for the IMF to accept a new agreement with the country, Argentina should finalize its credit with China, that is, the swap (or “currency exchange”) that today reaches some U $ s 18,000 million and represents 72% of the gross reserves that the Central Bank has in its possession.
The Central Bank has been liquidating reserves at high speed, facilitating capital escape and investment output of financial bicycle speculators. In total, more than US $ 1.8 billion since March 14 and almost $ 5,000 million so far this year. With this new agreement, Milei could try to reassure “the markets” to guarantee the continuity of their speculative businesses, but it will be hunger for tomorrow for the working people.
The IMF returned 7 years ago, by Mauricio Macri. That loan for US $ 45,000 million was legitimized in Congress in 2022 by Peronism and now the new mortgage that Milei negotiates is added. The left is the only political sector that openly raises the impossible need to reject the covenant with the IMF, to end the scourge that means for social majorities to live under the boot of this organism.
Source: www.laizquierdadiario.com
