Argentina's debt to the IMF grows 36% in a year under Milei and exceeds US$57 billion

[Edgardo]

WTF. I thought the IMF debt was being paid down but this says IMF debt actually went up with Milei. Sweet Jesus!

Deuda de Argentina con el FMI crece 36% en un año y supera los US$57.000 millones

El país acumula un endeudamiento de 41.789 millones de DEG, equivalente a unos 57.250 millones de dólares, y mantiene su lugar como el principal deudor del organismo multilateral. El gobierno de Javier Milei incumplió las metas de reservas netas y enfrenta vencimientos por más de US$3.600...

www.cnnchile.com

 

[CraigM]

WTF. I thought the IMF debt was being paid down but this says IMF debt actually went up with Milei. Sweet Jesus!

Deuda de Argentina con el FMI crece 36% en un año y supera los US$57.000 millones

El país acumula un endeudamiento de 41.789 millones de DEG, equivalente a unos 57.250 millones de dólares, y mantiene su lugar como el principal deudor del organismo multilateral. El gobierno de Javier Milei incumplió las metas de reservas netas y enfrenta vencimientos por más de US$3.600...

www.cnnchile.com

I mean no disrespect but it's been in the news for ages. Argentina borrowed another $20B from the IMF last year, roughly half upfront and the rest over 4 years. Argentina has a serious liquidity problem (i.e. debts coming due) and whether you like Milei or not, it has nothing to do with his administration. He eliminated the deficit to stop the problem from getting worse but it does nothing to solve the debts of past administrations, which are coming due and they are huge.

 

[Edgardo]

I mean no disrespect but it's been in the news for ages. Argentina borrowed another $20B from the IMF last year, roughly half upfront and the rest over 4 years. Argentina has a serious liquidity problem (i.e. debts coming due) and whether you like Milei or not, it has nothing to do with his administration. He eliminated the deficit to stop the problem from getting worse but it does nothing to solve the debts of past administrations, which are coming due and they are huge.

What do you think is the solution Craig. I don't keep up too much about the IMF. I thought they were making progress paying them down. I guess I didn't see they took another $20 billion. I talked to someone that works in a big company here based in Europe and they tell me that the cepo is still in place. I thought that got eased already but I guess that was only for individuals.

Why would a company do business in Argentina if the cepo is still in place? This is an honest question.

 

[Wally]

What do you think is the solution Craig. I don't keep up too much about the IMF. I thought they were making progress paying them down. I guess I didn't see they took another $20 billion. I talked to someone that works in a big company here based in Europe and they tell me that the cepo is still in place. I thought that got eased already but I guess that was only for individuals.

Why would a company do business in Argentina if the cepo is still in place? This is an honest question.

The Cepo is still in place for companies. I always joke if you want to see the true exchange rate just get rid of them and you will quickly see what the true value is. To answer your question, a foreign company wouldn't really want to come here until all the currency controls are eliminated. The RIGI gives them protection for 30 years but many are going to wait and see if Milei wins for another 4 years before they invest big money here.

We are stuck between a rock and a hard place with all that debt coming due.

 

[Finance Prof]

WTF. I thought the IMF debt was being paid down but this says IMF debt actually went up with Milei. Sweet Jesus!

Deuda de Argentina con el FMI crece 36% en un año y supera los US$57.000 millones

El país acumula un endeudamiento de 41.789 millones de DEG, equivalente a unos 57.250 millones de dólares, y mantiene su lugar como el principal deudor del organismo multilateral. El gobierno de Javier Milei incumplió las metas de reservas netas y enfrenta vencimientos por más de US$3.600...

www.cnnchile.com

https://www.swissinfo.ch/spa/la-deuda-de-argentina-con-el-fmi-creci%C3%B3-un-36-%25-durante-el-primer-a%C3%B1o-del-nuevo-programa/91241723

 

[Avocado]

Macri and Milei are responsible for all of this debt to the IMF.

 

[CraigM]

What do you think is the solution Craig. I don't keep up too much about the IMF. I thought they were making progress paying them down. I guess I didn't see they took another $20 billion. I talked to someone that works in a big company here based in Europe and they tell me that the cepo is still in place. I thought that got eased already but I guess that was only for individuals.

I'm not sure Eduardo. The problem with digging such a deep economic hole is that you reach a point where every decision you face involves terrible tradeoffs. My only observation since Milei got elected was that he would need to push as many economic reforms through as possible before voters tired of all the sacrifice and turned on him. I was very dismayed by all the scams because it could only shorten that time frame. It also weakens trust and support outside Argentina which is needed to cope with debt payments.

 

[Johnny]

I'm not sure Eduardo. The problem with digging such a deep economic hole is that you reach a point where every decision you face involves terrible tradeoffs. My only observation since Milei got elected was that he would need to push as many economic reforms through as possible before voters tired of all the sacrifice and turned on him. I was very dismayed by all the scams because it could only shorten that time frame. It also weakens trust and support outside Argentina which is needed to cope with debt payments.

Agree with Craig. He seems to have done a good job trying to get things pushed through and I applaud the locals for hanging in there. The last times I have gone done it was wicked expensive. What seems to have become a big focus is corruption now. Before when I went down all anyone talked about was the inflation. Now people I send WhatsApp all talk about the scams by the government.

I don't know how a foreign company would want to come in having currency controls in place and have the president and his sister actively involved with scamming the people. Not a good look. He is asking people to be more patient but doubt they will if more scams come to light.

 

[Avocado]

I'm not sure Eduardo. The problem with digging such a deep economic hole is that you reach a point where every decision you face involves terrible tradeoffs. My only observation since Milei got elected was that he would need to push as many economic reforms through as possible before voters tired of all the sacrifice and turned on him. I was very dismayed by all the scams because it could only shorten that time frame. It also weakens trust and support outside Argentina which is needed to cope with debt payments.

Why should we sacrifice and suffer if that money is going in Karina's back pocket?

Why did all of you criticize Cristina but when Milei does it no one says anything?

They don't even investigate the crimes.

Agree with Craig. He seems to have done a good job trying to get things pushed through and I applaud the locals for hanging in there. The last times I have gone done it was wicked expensive. What seems to have become a big focus is corruption now. Before when I went down all anyone talked about was the inflation. Now people I send WhatsApp all talk about the scams by the government.

I don't know how a foreign company would want to come in having currency controls in place and have the president and his sister actively involved with scamming the people. Not a good look. He is asking people to be more patient but doubt they will if more scams come to light.

I don't understand any outside company that would come to Argentina knowing that the President is a thief.

 

[CraigM]

Why should we sacrifice and suffer if that money is going in Karina's back pocket?

Why did all of you criticize Cristina but when Milei does it no one says anything?

They don't even investigate the crimes.

We've been over this before, Avocado. Everyone here has been plenty critical of Milei, but I've yet to hear you say anything bad about the Kirchner's.

 

[CraigM]

I don't understand any outside company that would come to Argentina knowing that the President is a thief.

Some companies would see that as a positive 🙂

 

[ben]

We've been over this before, Avocado. Everyone here has been plenty critical of Milei, but I've yet to hear you say anything bad about the Kirchner's.

One thing is clear is Cristina was much better at stealing than Milei and his team. They are very bad at it. They should quit while they are ahead or at least ask Cristina for advice. I am seeing reports of using their own phones, leaving voicemails and other unbelievable stuff.

 

[Avocado]

We've been over this before, Avocado. Everyone here has been plenty critical of Milei, but I've yet to hear you say anything bad about the Kirchner's.

Well she has an ankle bracelet on doesn't she? Probably the same one that Milei and his sister will get one day.

I think it common knowledge that all politicians will steal. What many can't stand is the high horse that Milei, Adorni and all the rest pretended like they would do different.

Did you see all the evidence Craig? Did you see how they raided ANDIS and this is the tip of the iceberg. Milei's own personal lawyer was involved with that! Do you really think he and his sister were not involved?

They are all thieves. Not one worse than the other.

 

[Silvia]

What would get me back on supporting Milei is if he totally cleaned his administration. If he says he wasn't in on the corruption than he should fire Adorni, fire his sister and no more stealing of any kind. It just seems like sticking with people he knows the people don't trust is not good.