IMF suspends release of $3 billion tranche of $50 billion Argentina bailout

[sandensea]

The International Monetary Fund (IMF) announced a suspension of a $3 billion disbursement scheduled for today as part of the $50 billion stand-by credit line agreed to with Argentina on June 8.

A press release issued by the IMF stated that the disbursement is to be suspended pending ongoing negotiations requested by Argentine President Mauricio Macri for an $18 billion advance and for relaxed terms.

Macri had already drawn $15 billion from the credit line on June 22 - of which $13 billion have already been spent, mostly to compensate for capital flight.

The June 8 credit line was stipulated on Argentina's meeting a set of economic goals, including an inflation rate of no more than 2% a month (28% annualized) and budget cuts of $10 billion (8% of the federal total).

Argentina yesterday reported an inflation rate of 3.9% in August, and 34.4% from the same time last year. September inflation is projected to exceed 6% a month.

From bubble to bailout

The country's current crisis began in April, when reports that the current account deficit had doubled (to a record $31 billion) and that its foreign debt expanded by $52 billion in 2017 alone set off a wave of capital flight - some $25 billion so far this year.

Efforts to stem capital flight, including raising central bank discount rates from 27% in April to 60% now, have thus far failed: The peso has since lost half its value, pushing inflation from 25% in 2017 to an offically projected 42% this year.

Higher interest rates are in turn exacerbating the recession, with GDP down 6.7% as of June and retail sales down 8% in August.

Critics note that besides being unconstitutional, the agreement includes no provisions to curb record current account (external) deficits or capital flight.

The currency crisis intensified on August 29 after President Mauricio Macri falsely claimed to have secured IMF approval for the $18 billion advance. The dollar has since climbed 26%, to 40.53 pesos.

Déja vu

Today's announcement recalls the IMF's December 5, 2001, decision to suspend a $1.26 billion tranche of a similar, $38 billion stand-by credit line agreed to with Argentina a year earlier.

Facing escalating interest payments to bondholders as well as amounting capital flight, Argentina defaulted on $82 billion in bonds within a month of the IMF suspension.

The president at the time, Fernando de la Rúa, who, like Macri, had been applauded by both the IMF and the White House, resigned amid riots.

At: https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=https%3A%2F%2Fwww.eldestapeweb.com%2Fel-fmi-suspendio-pagos-argentina-que-se-redefina-el-acuerdo-n49186&edit-text=

There, there: the IMF's Christine Lagarde comforts Argentine Economy Minister Nicolás Dujovne before suspending today's scheduled $3 billion disbursement.

Refusing to enact currency controls, Argentina's Macri has mostly used recent IMF loans to finance record capital flight - over $25 billion so far this year. Most analysts now expect a bond default no later than March.

[Judi Lynn]

1. Wow, in serious trouble already. Only 3 months since Macri arranged his access

to a huge credit line.

This decision didn't take long at all, did it? Macri got grabby. He doesn't have any self-control.

The people have only been able to watch and wonder, at this point. How much longer will they be expected to endure this?

Crazy days. Any bets on which way he's going to go next?

Wait, last week we heard Trump is considering throwing some cash at Argentina for Macri.

Sandensea, this is a stunning step already. Should be getting more interesting after this, although I don't imagine the population feels all that entertained by it.

Thank you for the information.

[sandensea]

2. Macri's answer to the crisis his own deregulation and corruption created?

Throw Cristina Kirchner in jail.

Here's footage she published recently of what they did to her home in El Calafate (SW Argentina).

Macri's napkin judge, Bonadío, already had his goons run ultrasound scanners to see if anything was "hidden" in the walls and floorboards (nothing there). But he then ordered them to punch holes - even rip stonework off and cut drywall out - just to terrorize her.

I guess Macri figures that if it worked against Lula, it'll work against her.

They also damaged numerous furnishings (among them the chair Néstor Kirchner famously lectured Bush from in '05) and stole over a dozen paintings (all by local artists, and most of them gifts) and mementos - including the presidential sash and baton used by Héctor Cámpora in his 1973 inaugural (a gift from the Cámpora family).

Even Néstor Kirchner's sash and baton as well as Mrs. Kirchner's own were taken - and only returned after media reports.

Suffice it to say, no counsel or defendant designees were allowed to witness the raid (which in Argentina would normally make the raid illegal, and force the judge's impeachment). The same, you'll recall, was done to her Buenos Aires apartment - besides the poisoning (she still hasn't been able to enter the dwelling).

No wonder Cheeto's so fond of him. Authoritarian kleptocrats always seem to get on famously with Trump.

[Judi Lynn]

3. It's so important Cristina Kirchner took the time and effort to make that video.

Most people would never have believed a country's president could order his agents to do that to another President's home without being able to see it for themselves. Common sense would prevent ordinary people from even considering doing such vicious damage to another's home simply because they could!

Flexing his creepy muscles, pounding home the reality that she doesn't want to mess with him because he can literally do anything he wants in the moment as long as he is the President. So few people are that evil and stupid to entertain the thought of making such destructive, filthy idiots of themselves.

Huge sections of wall simply ripped away, and all those damned holes all over the place so absolutely everything almost had to be removed and replaced. The overwhelming cost would be horrendous to the home owner, and take so much valuable time, and for nothing but sadistic chest pounding.

They didn't want witnesses to their treachery. The public will never believe Cristina did that to herself, never. No one is that absurd, no one is that ambitious, other than fascists. No honor at all, and they have no ability to be shamed. Being feared is all that matters.

As soon as Cristina started that tour, I actually felt myself getting more and more nauseous as she moved inward through the house.

They added this to the impossible ugly acts against her already employed earlier. Poisoning? They literally left no stone unturned. I hope it won't be so long before this all comes tumbling down around their heads, but they are so entrenched, it could be awhile, if the human race doesn't get lucky.

No doubt, somewhere in the White House Trump threw a tantrum when he learned Macri has had the nerve to do this to a former President he hates, and Trump has only been able to tell stupid lies and gibber daily on Twitter, while his criminals in Congress do his bidding.

Oh, yes, the photo in the opening post is incredibly repulsive with LeGarde comforting the hideous little Economic minister. Truly unpleasant, isn't it?

Very eye-opening information, sandensea. Thank you, so much, for keeping us more current than we could possibly be without your thoughtfulness.