Groundhog Day Looms in Argentina as the IMF Returns | Opinion | teleSUR English

Indeed, finance capital’s renewed structural centrality is also evident in recent state spending agreements. The figures, taken from the Central Bank of the Republic of Argentina are mind-blowing. Private loan funding to service both debt repayments and for ongoing public sector projects for has increased tenfold in the first six months of the Macri government in 2016 compared to the same period last year. Such deals are tied to the vulture funds agreement and the associated bond issue. Foreign currency accumulation achieved through 1) indebtedness and financial speculation; 2) the remittance of profits and dividends abroad (restricted by the Cristina Fernandez’ administration) which has increased thirteen-fold year on year; and 3) interest payments which have more than doubled in the same timeframe, mean that current annual payments to foreign capital equate to US$10 billion. This will only increase in the foreseeable future. While the privilege of re-joining the IMF will mean that Argentina will have to indebt itself by a further US $400m, the 2016 budget approved by congress will add US$40 billion overall to the 2015 debt.

via Groundhog Day Looms in Argentina as the IMF Returns | Opinion | teleSUR English

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