Market. Argentina's "dependence" on dollar debt, according to the Financial Times

Argentina again becomes a protagonist in the economic news of the British newspaper
Financial Times. With the headline "The addiction to US dollar borrowing continues the country again," the economic paper says the country "is rushing to another debt default, the ninth in its history." He also noted that the "original sin" of Mauricio Macri's administration had not accelerated fiscal consolidation at the beginning of his term four years ago.

"The IMF's badumptions about Argentina's ability to renew its short-term debt have proved extremely optimistic in the face of political uncertainty," the article began. "The resounding defeat of President Mauricio Macri in a first election at the national level has provoked prolonged turbulence on the financial markets.The currency has weakened by around 25%, bringing to a secondly, the country's public debt relative to its domestic product close to 100% (86% at the end of 2018) ", he added.

"Maturity extensions are rated by default by rating agencies, and institutional investors have had no option to delay the payment of $ 7 billion of short-term debt." US government imposed.Again now It will try to negotiate a restructuring of the rest of its debt, divided between 44,000 million US dollars in payments to the IMF and 50,000 million in international bonds. hard to get, "they explained.

On the agreement with the IMF, the most important in the history of the fund, the
Financial Times He added that "the heavily loaded model will be subject to scrutiny, especially given the history of Argentina's debt."

"The successful renegotiation of the US $ 44,000 million with the IMF is highly unlikely.First, this has never been done before.Very likely, the Fund will allow Argentina to default or sign a new bailout with new cash, issuing a new credit to pay itself, but even this will face major hurdles.The recent statement of Alberto Fernández, main presidential candidate, accusing the IMF to aggravate some of the country's problems and facilitate capital flight is ominous The IMF will also face a strong domestic resistance, "warns the newspaper.

On the Macri government, the
Financial time He says that "the country's economic problems are deeply rooted, but Macri has a responsibility not to deal with them more firmly.The years of huge budget and current account deficits are only slowing down, the latter is due more to a collapse imports only to a sustained improvement of exports ".

He adds, "If Macri had accelerated fiscal consolidation at the beginning of its mandate four years ago and was more dependent on domestic financing, the vulnerabilities of Argentina would be much smaller." This problem of "original sin "was the fall of the country once and again".

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