Argentina secures $5 billion in new international loans
Argentine President Javier Milei secured $5 billion in new international loans under partial guarantee schemes provided by multilateral organizations
On Monday, June 22, Argentine President Javier Milei authorized the Treasury to acquire $5 billion in new debt under partial guarantee schemes provided by multilateral organizations.
While the resolution does not specify the lenders involved, it does mention the “recent approvals from the World Bank, the Multilateral Investment Guarantee Agency, and the Inter-American Development Bank, which provided guarantees totaling $2.55 billion to facilitate access to foreign currency.”
The Mieli administration considers the measure a “strategy to reduce its financing costs, deeming the collaboration with internationally recognized banking institutions as advantageous.”
The funds in question are urgently needed to meet debt payments in foreign currency due for the current and next fiscal years.
By tying international banks to public coffers, the government is compromising the country, “deepening an external dependency that limits social spending and public investment.”
Regarding the country’s internal situation, it is known that the first major payment is due on July 9, with the maturity of $4.35 billion in principal on Global and Bonar bonds. Of this total, $3.8 billion is owed to private creditors, so the economic team must ensure immediate liquidity to avoid a default scenario.
M.Pino
Source: ultimasnoticias
(Reference image source: Paul on Unsplash)
Follow our news on Google! For current, interesting, and accurate information, click here to see all the content on Bitfinance.news. You can also find us on X/Twitter and Instagram
