Lack of Transparency in the IMF Loan Increases Argentina’s Country Risk
X/ @radiofenix951
March 31, 2025 Hour: 2:57 pm
In anticipation of the legislative elections, Milei is trying to curb the collapse of the Central Bank’s reserves.
On Monday, Argentina’s risk premium jumped by 8.2%, reaching 863 basis points, in less than 24 hours. The U.S. dollar in the uncontrolled market rose to 1,325 pesos, experiencing a 2% increase.
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This surge reflects growing anxiety over the new US$20 billion loan that President Javier Milei is negotiating with the International Monetary Fund (IMF), along with the impact of the global trade war and the lack of clarity in local economic policies.
In recent weeks, Milei approved a decree to increase public debt by US$20 billion without prior parliamentary debate. The lack of transparency regarding the loan’s conditions, targets, and disbursement schedule further deepens distrust among economic agents.
The new IMF loan would add to the US$44 billion debt contracted by former President Mauricio Macri between 2018 and 2019. Of this debt, Argentina still owes US$40.7 billion, despite having already paid US$12.5 billion in interest.
In anticipation of the legislative elections set for October, however, far-right President Milei is trying to curb the collapse of the Central Bank’s reserves, which has sold US$1.6 billion in less than 10 days to contain currency depreciation.
Analysts warn that without a credible and viable macroeconomic plan, Argentina could repeat the collapse of 2018-2019, a period during which the IMF demanded adjustments that sank consumption and increased poverty.
teleSUR/ JF
Source: Ambito Financiero
