Post by account_disabled on Dec 20, 2023 1:20:10 GMT -5
Macri received more than $100 million in financing from the and Argentina became the organization's main debtor. Its debt is now equal to that of the institution's investment portfolio. Yet the huge injection of money failed to prevent the crisis and even pushed the outgoing government into default. A few days before the blackout. From the first day in office of the winning formula of Alberto Fernandez and Cristina Fernandez de Kirchner, the expiration date of the IMF loan was like Damoca.
The sword of Leith hangs over the new government. All sectors of the Todos Front agreed on some basic issues. Macri assumed the loan under an IMF agreement with questionable legality and very little domestic political legi Job Function Email List timacy. The debt was assumed without discussion in the Argentine Congress, the president announced in a video. This is a fait accompli. One and a half minutes long. An internal evaluation report of the International Monetary Fund itself.
The complaint acknowledged that Argentina provided at least some U.S. dollar funding to financial investors to unwind their peso positions and flee the country's currency. The possibility of actually paying back the loan was illusive from the start. Then during the pandemic it became clear that it was impossible to face the dollar maturity schedule as agreed. But that was the end of the agreement. At the same time the loan remains valid because it is a sovereign obligation undertaken by the state. After two years of negotiations, Economy Minister MartÃn Guzman came to Colombia.
Students of economics professor Joseph Stiglitz announced that they had reached a preliminary agreement on refinancing. This took the form of an extension of a loan credit through which the IMF would provide the country with the amount needed to meet each scheduled payment, subject to approval of a quarterly review of Argentina's economic data. The conditions demanded by the IMF, although they are lower than those the agency has historically imposed, include a commitment to raise energy prices and to review the country in some way.