Macri says goodbye by declaring the default of his debt …

The macro economy ends in fault. August 28, 2019 will be the day the Macri government will have acknowledged that after leading the most dizzying debt cycle in the history of Argentina, can not meet deadlines for principal and interest under agreed terms. The Minister of Finance, Hernán Lacunza, announced that there would be a broad restructuring of the short and long-term maturities, including the loan from the International Monetary Fund. That is to say that almost all the public debt is now in arrears and without agreement in force with the IMF
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The macro-evaluation threw the economy into a scenario of impossibility to pay the debt. The fall is shocking. Macri has benefited from a debt reduction economy, with excellent credit and sustainability indicators, to put it at risk. And he did it in just two years. It has been able to survive since April of last year thanks to the huge IMF loan, approved by the United States of Donald Trump. But these dollars are finished. The disbursement scheduled for mid-September will be part of a new agreement with the IMF. We will not have to wait for those dollars; They will be part of another financial package.

The macroeconomic debt cycle is so vague that it includes the absurd emission of a guarantee of 100 years, a debt investment led by Finance Minister Luis Caputo. Also received a $ 57 billion stand-by-record loan from the IMF. The Lacunza announcement seeks to avoid a uncontrolled defect. What he did was he acknowledged that this cessation of payments ordered.

Lacunza said that the debt problem is liquidity, that is, there is a lack of dollars, and no solvency. It is not like that. They do not reach the dollars and macrismo sent to the economy at insolvency. The indicator that exposes this vulnerability is Debt / GDP ratio. He received it with a figure of 37.6% and during those almost four years he has worsened, now exceeding one hundred percent. That is to say, The total public sector debt is equivalent to the product. And with an immediate horizon of a bigger fall.

Such a failure of the public finance administration can not be disguised philosophical delusions and politics Regarding the election results, Lacunza played a sad role before declaring that the Macri government could not pay the debt. The way to compensate for the default was to present the proposal to extend the debt maturities in the short and long term, local and international legislation.

The mission message of the Fund headed by the director of the department of the Western Hemisphere, Alejandro WernerWhen it was revealed that there was no established political power to negotiate, it was that, under the current conditions, there could be any other payment made by the company. agency, estimated at about 5400 million dollars. The question about what the IMF was going to do had an answer. What followed was the default statement.