Argentina's IMF problem

Macri inherited a US$86 billion mess, which he failed to blame on the previous administration, then borrowed US$50 billion +/- from the IMF and now he's to blame from the mess that we're in, apparently. The truth is that this country will never get out of this black borrowing hole if they don't slash public spending and handouts, but that's not going to happen. heck, it didn't even happen under Macri, apart from ditching a few hangers on (ñoquis).

Now the country is borrowing from Russia and Saudi Arabia, two countries known for their versions of democracy, just like China. Borrowing to pay off debts and to top up the dwindling central bank reserves which are almost dry.

I wonder if they feel proud of themselves.

Most sensible entities are urging the government to devalue or indeed to let the peso run free.

But they won't because for a Peronist to admit that they were wrong is tantamount to committing suicide.

The big problem is Cristina. She wants Guzman to follow her agenda, which is not to bend to the IMF and if all goes tits up, she'll once again leave Alberto to take the blame so she can say 'I told you so'

The in-fighting within the government is hampering the negotiations and the IMF, who are not fools in spite of what CFK may think (anyone remember Elliot Management and the Vulture Fund?).

She sees the IMF as nothing but a blood sucker and would rather see the country implode than give in to them. That is the big problem here.

10th December, Friday - Day of Democracy, celebrating the day that Alfonsin became president in 1983.

On Friday, whilst Martin Guzman, the economy minister is in Washington negotiating the US$40 billion debt with the IMF, Alberto and Cristina will be heading a massive march in Plaza de Mayo.

It's said they they will be issuing harsh criticisms of the IMF which sounds to me like an intentional spanner in the works. Also, La Campora headed by Maximo Kirchner will also be there along with hundreds of different social/union movements to add to the flames against the IMF.

Not to mention that convicted Brazil ex-president Lula will also be there as guest of honour.

We can only look on in bewilderment as yet another Peronist government commits hara-kiri in public.

El Gobierno aprovechará la marcha por el Día de la Democracia para fortalecer el relato anti ajuste en medio de la negociación con el FMI | TN

Quote from Rice

But DO they ever commit hara-kiri? They seem to be the Night of the Living Dead,

We live in hope!

Up until November last year the country owed the IMF US$43 billion.

Congress, correct me if I'm wrong, is today debating the deal that the government has reached with the IMF. But not everyone wants the deal, especially CFK who is prepared to see the country go into default first, according to many.

From what I can gather, there are deadlines for payments of around US$19 billion this year and next and Argentina's total debt to the IMF represents around 30% of that organisation's total world lending.

It's much scarier than we think and frankly unbelievable, considering the country's appalling track record that it was lent the US$57 billion in the first place.

Source:

Deuda con el FMI: 4 gráficos para entender el acuerdo que la Argentina busca renegociar - Chequeado

Este miércoles el presidente Alberto Fernández y su ministro de Economía, Martín Guzmán, se reunieron con gobernadores de todo el país, a quienes les…

chequeado.com

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