New external debt payments

The debt payments this week stood at $ 692 million, linked to the 2020 bond restructuring. This is an important amount if one takes into account the difficulties on the external front and the commitments with the Monetary Fund for the coming months.

In the first quarter of the year, the country should pay the IMF some 3,976 million dollars between principal and interest, of which 1,100 million are due between the end of this month and the beginning of February.

Therefore, the President Alberto Fernández together with the economic team assures that the debt with the IMF cannot be paid under current conditions and it must be renegotiated before March. But the priority of this negotiation is that the agreement program does not imply a fiscal austerity that damages the internal recovery.

Along these same lines, the Nobel Prize in Economics Joseph Stiglitz spoke on Monday, when he assured that the Monetary Fund would make a mistake if it asks Argentina to advance in a new adjustment program that slows down GDP growth in recent months.

“The IMF has gained new respect for effective responses to global crises, from the pandemic and climate change to inequality and debt. If this course were reversed with antiquated austerity requirements for Argentina, the consequences for the Fund itself would be serious, ”said the international economist.

“The recovery of the Argentine economy is surprising,” he added in his last opinion column on the Project Syndicate portal. The economist stated that the recomposition of the Argentine domestic market is the result of State policies to strengthen the real economy. “Given the mess he inherited, the government of Argentine President Alberto Fernández at the end of 2019 seems to have achieved an economic miracle,” he considered.

This Tuesday, dollar blue registered a jump of almost 3 pesos to settle at 209 pesos. On the other hand, the cash with liquidation lost 1 percent and closed at 210.46 pesos. The Central Bank managed to buy another 20 million dollars and accumulates purchases for 200 million so far in January. In total, 126 million dollars were traded in the exchange market this Tuesday and another 63 million dollars in the futures market.

As for the stock market assets, a rise of the Merval of 1.3 percent stood out. In turn, foreign currency bonds registered another day of falls of up to almost 2 percent. The country risk ended at 1821 points.

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