World Champion of Debt | The World Bank has …

The World Bank estimated that Argentina was the most indebted country in 2018. "Argentina is a special case among the major borrowers. outstanding external debt increased by 19%, largely due to the aid package of the International Monetary Fund and increase in short-term debt", Indicates the multilateral agency in its last report on international debt statistics. Although the financial market is closed and the IMF has not yet allowed the planned disbursement of some $ 5,400 million, successive devaluations have increased. outstanding external debt of more than 100% of the proceeds in 2019. Anticipating a contraction of 3.1% of GDP, the World Bank does not associate debt with the onset of the crisis.

The report released earlier this month is timidly warning against rising external debt in developing countries. "Debt indicators indicate that the debt burden may be contributing to economic vulnerability," says the report, which underlined two years ago the complete reintegration of Argentina in the logic of international financial markets. Among the global risk indicators identified by the World Bank stands out the increase in the debt-to-exports ratio which has risen to 120% in 2018. The momentum of this figure would reflect the growing difficulties of middle-income countries in generating real resources to meet their financial obligations.

Over the past year, the debt balance has also increased among the top 10 borrowers in the world, including Brazil, India Mexico, Indonesia, South Africa, Russia and Turkey but in any case, the rate of increase in liabilities. The exception in the group was Argentina's dizzying debt fueled by the artificial respirator of the Fund since mid-2018. Another country that recorded an increase, although slightly lower than Argentina, was China with an increase of 18% and which, because of its size, stimulated the growth of the debt of the developing countries.

What does the same report say in its edition published just two years ago? "The most significant event of 2016 has been the very successful return of Argentina to the markets after 15 years of absence," the report said with appreciation. agreement with vulture funds which, combined with the process of financial and exchange deregulation, led the way. for the new debt cycle.

The process initiated by the various geological layers of Cambodian officials that has followed since the arrival of Mauricio Macri at Casa Rosada has exacerbated the external vulnerability to lead the country to a new debt crisis with direct consequences on living conditions. "If we exclude Argentina, the net income of bonds in 2016 show little change compared to 2015," says the World Bank document.

Last year, Argentina's indebtedness was against the rest of the developing world. "Debt flows of low- and middle-income countries have fallen by 28% in 2018, to $ 529 billion, under the effect of declining flows in the short and long term," said the World Bank The reduction explained the funds provided to countries by private creditors when buying bonds and other debt securities. Net funding from multilateral organizations, on the other hand, showed an increase of 86% which "reflects IMF support to Argentina". The flows provided by these credit institutions "increased by $ 61 billion, half of which in Argentina."

The World Bank estimated last week that the Argentine economy is expected to contract by 3.1% this year. The multilateral agency that accompanied and celebrated the "reform agenda" promoted by Mauricio Macri's government early in the year projected a drop of "only" 1.7% in 2019. The report released last Thursday by the entity does not offer any explanation. For the Argentine crisis.