It is the largest loan in the history of the International monetary Fund (IMF). Nevertheless, Argentina is again facing bankruptcy.
demonstrators demand: “no, to the payment of foreign debt” photo: reuters
BUENOS AIRES taz | Argentina is broke. This year alone, the state would have to pay 21 billion dollars of debt service. Even if the international credit rating agencies have not lowered your thumbs to the bottom – in fact, the inability to pay is already. “The country cannot bear the burden of debt. It is fundamental that there is relief,“ said Argentina’s Finance Minister, Martín Guzmán.
This is also confirmed by the International monetary Fund (IMF). Last Wednesday, the Fund is not admitted for the first time that Argentina’s debt service is “portable”. The provision of the necessary financial resources would be “neither economically nor politically feasible,” and only the renunciation of private creditors on “a significant contribution” could make the debt service again, explained the Fund.
With about 310 billion U.S. dollars, the Argentine government is in the chalk. This corresponds to 90 per cent of the gross domestic product. The share of liabilities with private creditors amounts to 191 billion dollars. According to a report by the Argentine business newspaper El Cronista, the four largest private creditors of the investment Fund Pimco, which belongs to the German Alliance, and the American funds, Franklin, BlackRock and Fidelity are. They hold some $ 25 billion of liabilities.
Surprisingly, the support of the IMF is not. Almost two years ago, Argentina was also shortly before the bankruptcy. The then President Mauricio Macri had to ask the IMF for financial assistance. In record time, the record sum of 57 billion dollars was granted Dollar. Never before has the IMF had assigned such a high credit to a country. A Central condition of the IMF, the reduction of the budget was deficit. However, there is no drastic cut in social spending was required. 44 billion US-dollars have since been transferred. It is the largest private single chunk.
Also, Argentina’s new government under President Alberto Fernández holds, despite its loud rhetoric on the IMF requirements and throttles constantly, but quietly the government spending. So, among other things, a already adopted pension increase were put on hold, a hiring freeze for state employees, and the severance payments for laid-off state is cut in half employees. The Protest, however, within narrow limits – to the delight of the financial lobby. Fernández has done more than Macri would be able to enforce, so the Tenor.
“I supported the Finance Minister Martín Guzmán and the leadership of President Alberto Fernández in their efforts to stabilise the economy and fight poverty” said IMF Chief Kristalina Georgieva said on Saturday after a Meeting with Guzman at the sidelines of the G20 Meetings in Saudi Arabia. What are the dimensions of the Fund endorsed a debt cut could move, however, is completely open. Ask for specific Figures, Guzmán replied so far, always with cryptic-academic responses.
The trial balloon for such a debt cut, the province of Buenos Aires launched two weeks ago. Provincial Governor Axel Kicillof made to creditors of its province of a debt Restructuring package, which provided for a drastic cut. But the former Minister of economy of Ex-President Cristina Kirchner failed grandios and repaid the entire due sum. For the necessary funds, he suspended only days later, an already agreed increase in the salaries of the teachers of the province. Gritting his teeth, it accepted the powerful teachers unions.
