IMF positively cautious about Argentina's public policies prospects

Thursday, January 30th 2020 - 08:24 UTC

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Greater certainty around Argentina’s public policies could help reactivate growth and investments in the recession-hit country, the International Monetary Fund said on Wednesday. Read full article

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Enrique Massot
The IMF has no option but to be 'cautiously optimistic.' It bears a part of responsibility in Argentina's indebtedness. When one party lends and another borrow, both parties must be reasonably satisfied the money can and will be paid.

Now, when former president Mauricio Macri decided it was time to talk to the IMF, it was because private lenders had slammed the door on Argentina because they realized they had lent an incredible amount in a very short period.

So the IMF knew there was a problem with the government ways of dealing with the economy, that is, borrowing -- and capital flight -- were the only tangible activities of the Macri administration.

No matter. With Donald Trump anxious to help his little friend win the 2019 election, the IMF agreed to rescue Argentina by granting it its largest-ever, $57-billion loan, compromising 60 per cent of its lending portfolio.

This was done in record short time, without the usual technical assessments prepared by IMF technocrats.

All these factors will make the elephant in the room when discussions with Economy Minister Martin Guzman begin.
Jan 31st, 2020 - 04:19 am - Link - Report abuse 0
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