There are no more dollars. Resources are exhausted and Argentines face the reality of a delicate financial situation.
With the payment of almost US $ 1.9 billion made yesterday to the International Monetary Fund, Argentina extinguished almost all of the US $ 4334 million in Special Drawing Rights that the organization sent just four months ago, as part of the extraordinary contribution to member countries to combat the crisis unleashed by the Covid-19 pandemic. And in the Central Bank reserves There is hardly enough fuel to go through the next two months, but there are no more funds to face the strong maturities that lie ahead in 90 days.
It will be possible claim for the use granted to the loan of US $ 44,000 million that the country received during the government of Mauricio Macri. Distribute blame between Argentine officials and those who lead the IMF at that time, from the audit carried out by the financial body itself. And with these arguments, ask the Fund to agree to relax conditions to reach an agreement.
But the concrete thing is that time is running out and the delay in negotiations only adds uncertainty to a scenario that has individuals and companies living in the short term.
the problem of delaying an agreement with the imf
How to project a year without knowing if inflation will exceed 50% as the analysts anticipate or fall to 33% as established by the failed Budget project, if the rebound turns into growth, if external credit will recover, if real interest rates will be positive as requested by the IMF or will continue in negative territory, If the fiscal deficit will be reduced to levels in which it is not necessary to resort to a monetary emission that overheats prices, if investment will arrive, if consumption will grow, If the exchange gap is narrowed and the parallel dollar and the financiers will climb to $ 300 or will approach an official that is trading at half that value, if price control will be extended, if restrictions on foreign trade will be eliminated …?
Behind the electoral impasse agreed with the IMF, 2021 leaves with the unfulfilled promise to close the agreement before changing the almanac and a government in which although the voices of officials who emphasize the intention to comply with the commitments predominate, there is no lack of the one who calls to ignore the debt.
Liabilities with the Fund are barely 16% of the u $ s 268,416 million registered by the Argentine foreign debt at the end of the third quarter of the year. But it is necessary that, beyond the verbal pyrotechnics in times of Christmas holidays, the agreement is finalized as soon as possible and a roadmap is established for 2022 and the years to come. The longer it takes, so will investment and saving decisions that the country requires to improve its production, increase its exports and generate the dollars to help it organize its accounts and project growth.