Argentine public debt continues to break records, reaching $464,258 million as of November 2024, according to the official report of the Ministry of Finance. This increase of 1,729 million dollars compared to October is not an isolated event, but part of a trend that has marked the entire year. Since December 2023, the debt has grown by $93,585 million, an alarming figure that reveals deep structural problems.
A balance of 2024: booming debt
The increase in debt in November is broken down into a decrease in debt in foreign currency of 91 million dollars and an increase of 1,820 million in local currency. This pattern is repeated throughout the year: while debt in foreign currency was reduced by 9,954 million dollars compared to November 2023, debt in pesos increased significantly by 48,728 million. This change is due to the issuance of securities adjusted by CER and linked to the dollar, as well as the issuance of Treasury bills.
Due to the over-indebtedness of the State and the economic crisis, it was impossible until now for Caputo to issue debt in dollars on a large scale or close a new agreement with an international organization that would cause a greater jump in the debt in dollars. The open negotiations with the Monetary Fund, the possibilities of a restructuring with private bondholders and other avenues of credit, could modify this situation in 2025. During this year the main thing was the growth of the debt in pesos due to interest and the issuance of new instruments.
The debt with international organizations amounts to 74,201 million dollars, of which 40,862 million dollars are with the IMF. Meanwhile, interest of more than 12 billion dollars has been paid to the IMF.
In this framework, the argument of Javier Milei, who assumed the presidency in 2023, that the debt is a consequence of the fiscal deficit is not supported by reality. During 2024, there was no fiscal deficit, but the debt continued to grow. This data contradicts the official narrative and calls into question the adjustment policies that are presented as a solution.
Debt as an instrument of submission
The Left Front denounces that public debt is not only an economic problem, but a mechanism of political domination. Over the years, governments of different political stripes have used debt to finance capital flight, benefiting financial capital and harming the popular majorities.
The illegitimate and fraudulent nature of the Argentine debt opens the possibility of declaring a sovereign ignorance that frees the country from the mandates of the International Monetary Fund (IMF) and large international capital. From its origin in the military dictatorship until recent renegotiations, debt has been used to finance capital flight and not for productive investments. During the dictatorship, private debt was nationalized for the benefit of large companies. Alejandro Olmos’ investigation achieved a judicial ruling that considered 477 illegal acts proven only in relation to those operations.
The responsibility of governments
The governments of Cristina Fernández, Mauricio Macri and Alberto Fernández have played a key role in this process. During the Kirchner mandates, debt swaps were carried out that, although they were presented as successful, consolidated benefits for the vulture funds. Macri, for his part, stood out for scandalous operations such as the 100-year bond, while Alberto Fernández not only did not investigate these maneuvers, but also promoted an agreement with the IMF that validated the scam.
In this sense, Milei continues the tradition of prioritizing the payment of an illegitimate debt to the detriment of social needs. In 2024, debt payments of $9,307 million were made. Much of these resources could have been allocated to health, education or infrastructure.
The proposal of the Left Front
Given this panorama, the Left Front proposes a break with the IMF and sovereign ignorance of the debt. Debt repayment perpetuates poverty and adjustment, while benefiting speculators and international financial capital.
The increase in debt in 2024, despite the absence of a fiscal deficit, shows that the central problem is not State expenses, but the maintenance of a structure that prioritizes the interests of capital over the rights of the majority. It is time to rethink this model and opt for an economy democratically planned from below, which prioritizes the needs of the people and not the interests of the IMF and big businessmen.
Source: www.laizquierdadiario.com
