Having paid capital maturities for some US$2.6 billion this Tuesday, the state will pay between Thursday and Friday the record sum of US$ 848 in interest for the program agreed with the IMF. The sums given to imperialist countries are increasing, due to a debt that was used to finance capital flight during the administration of Mauricio Macri and that remains in force thanks to the decision of Sergio Massa and Peronism to validate it.
Two years agobefore the United States decided to raise the interest rate as a method to lower inflation, The quarterly payment was US$388 million, less than half. At that time the rate that the country paid was 4.25%, currently it reaches 8.2%. It is not only the increase in the cost of credit internationally that is the reason for such a high rate, the Fund imposes surcharges on Argentina for having exceeded its quota within the international organization. Specific, It is an unpayable debt whose objective is to keep the country subjugated and force it to carry out structural reforms that harm workers, retirees and their families.
Due to the rise in interest rates and surcharges, interest payments are increasing. For example, in 2020 they amounted to US$ 1,321 million, in 2021 they reached a total of US$ 1,350 million, in 2022 they were US$ 1,715 million and this year they are US$ 3,068 million. With this week’s payment, for the extraordinary loan of 2018/2019 and renewed by the current Government, Argentina will have paid the IMF interests for a total of US$ 8,914 million.
The Central Bank’s reserves to meet these maturities are at their limit.According to the institution’s own reports, gross reserves fell to US$21.8 billion, the lowest level since 2006. From this figure we must deduct the bank reserve requirements on dollar deposits (the money of depositors in banks). ) and other components that should not be used for debt payment. Different consulting firms estimate that net reserves are negative between US$9,000 and US$10,000 million.
Massa took the national State debt to a new record, exceeding US$400 billion in September. In the ninth month of the year, the increase was US$11,226 million, mainly due to new bond issues and the inflation update of the debt already contracted. Of the total, almost US$75 billion correspond to loans with the IMF, the World Bank (WB) and other international organizations.
At the same time that he grants the benefit of a higher dollar to exporters, the Minister of Economy continues to apply a strong fit. According to the Congressional Budget Office, for the month of September, even taking into account the increase in spending for the electoral period, there was a cut in primary spending that was 5.5% in the accumulated annual amount, measured in real terms (that is that is, discounted for inflation). This is why the social situation becomes more critical every day, poverty affects more than 56% of children under 14 years of age and 40% of the population.
Continuing to pay the fraudulent foreign debt means that more boys and girls go hungry; he sovereign ignorance of the same, as proposed by the Left Front, would allow all resources to be directed according to the needs of the great majorities.