The American Wall Street Journal published a column in which it confirmed that the money that the International Monetary Fund sent to Argentina as part of the Special Drawing Rights will allow the government “Passing the November midterm elections without a crisis and without making the necessary reforms to restore growth.”.
The text signed by writer Maria Anastasia O’Grady questions the IMF under the title Dollars for fiasco in Latin America.
The article emphasizes that economic resources are given to countries with ‘Dictators’, ‘unpleasant people’ and ‘socialist governments’, represented with Nicaragua, El Salvador and Argentina.
“These are some of the bad actors in the Western Hemisphere who have been awarded Special Drawing Rights (SDRs) as part of a new comprehensive $650 billion allocation,” the columnist wrote. And he added: “They do not follow the rules of the international communityBut suddenly hundreds of millions of dollars at very low prices fell into their coffers.”
Tough article in the Wall Street Journal about Argentina and the IMF.
The International Monetary Fund provides about 650,000 million US dollars, distributed among its 190 members, which represents a multilateral asset that complements the official reserves of countries.
From this figure, Argentina Income of about 4.335 million US dollars Last week, which corresponds to a 0.67% stake in the organization.
“Each of the 190 members received a new SDR allocation, according to their share of the fund, regardless of the nation’s commitment to minority rights, corporations, or state right,” O’Grady says.
“The oppressors will make unexpected gains, no questions asked.”The author concludes.
Having stated that this assistance will allow the government to pass legislative elections “without crisis” and without undertaking any reform in order to achieve sustainable growth of the economy, he adds that “the situation of the SDR as a means of helping the poor is weak in Argentina.”
The country owes the IMF about $46 billion with little prospect of repayment; The two parties have been negotiating debt rescheduling for months, but no progress has been made.”
“The problem lies in the socialist government’s economic model of populist spending, high taxes and capital controls, and inflation that exceeds 50% annually,” he warned.
In addition, he stressed that “Argentina can no longer access capital markets and investment has collapsed.”
Among the conclusions, O’Grady assumes that the aid will be for the payment of capital and interest, “to keep up with the fund.”
“This is where the contribution is directed to the poor,” he said.
Finally, the author of the article stated that “Without an agreement and without access to the capital markets for the next year, Argentina will have the only option to default, since it will have to make payments to the International Monetary Fund in the amount of 19 thousand million dollars in 2022. In 2023 AD .
There was a time when large multilateral donations were conditional on attempts at good governance. Those days have passed, ”the article closed.