The IMF ended the technical mission in Buenos Aires to audit the economy and review the agreement. There were no details about the new disbursement or about the accumulation of reserves of the Central Bank. According to BCRA data, The exchange current account is celebrating twelve consecutive months of deficit: more dollars come out than those entering the country.
It was the first review of the goals of the extended facilities agreement that was signed in April. “We will continue working in the next few days and we will provide more information on the next steps in due time,” said the background.
The main theme was surely the accumulation of reservations In the Central Bank, an agreed goal that the Government did not comply and for which they hope to receive a waiver, or “forgiveness”, of the IMF. As it transpired in the media, The Fund will support Milei until October that the elections will be held so that it will later carry out the counter -reforms: Labor and pension reform, which includes an increase in retirement age. The Government and the Fund want to advance in an antiobrero plan.
Dollars and debt
The Government decided to iron the dollar to decelerate inflation. This caused a fall in the commercial surplus of assets and in services there is a huge deficit, explained among other issues, due to the increase in Argentine tourism abroad and for the fall of tourists’ entry into the country. Caputo wants to finance these deficits and the accumulation of reservations with a new indebted party.
A feature to highlight is that The commercial surplus of goods (The relationship between what the country exports and what matters) It was drastically reduced. Between January and May of this year the commercial balance was US $ 1,883 million while in the same 2024 period it was US $ 8,862 million, A 79% decline.
Another dollar output factor is debt interest payments. So far from the Milei government they mean An output of US $17,000 million (between December 2023 and May 2025). Another fact to highlight is the low foreign direct investment.
The Central Bank’s exchange balance synthesizes all operations with dollars that pass through the exchange authority. The exchange balance had been rewarded with the devaluation of December 2023, but became negative since June 2024. It has already turned twelve consecutive months of deficit, between June of last year and May this year has $ 12,271 million in red.
The Minister of Economy minimized this red during his participation in Congress We are SMEs, in La Rural and justified that the external deficit is driven by the growth of investment and the recomposition of capital in an economy that, in his words, was “totally decapitalized.” However, the exchange delay has effects on the availability of dollars from the Central Bank.
The Fund looks at this data because its goal is to guarantee the benefits of international financial capital: hence it is likely that after the elections he will press for a devaluation that allows the reserves of the Central Bank to guarantee the future debt payments. It is the way to give free way to the country’s looting with the fraudulent debt mechanism that is recycled and expanded expanded from the 1976 military civic dictatorship. The consequences of honoring this scam fall on the working people. The agreement must be rejected with the Fund and mobilize due to the sovereign ignorance of the debt.
Source: www.laizquierdadiario.com
