The Argentine government ended up turning to the IMF because the promised dollars never arrived.
The recent agreement with the International Monetary Fund (IMF) would not have improved public perception of Javier Milei's government's economic direction in a key election year to define how the presidential administration will be in the coming years of its term. "The government is in a very difficult situation, the most difficult since the start of its term. It ended up resorting to a loan from the International Monetary Fund because the dollars they had promised never arrived," said Gustavo Córdoba, director of the Argentine consulting firm Zubán Córdoba, to Cara o ceca. According to the analyst, the economy remains the main concern of Argentines, beyond the start of the electoral calendar in some provinces. "Today in Argentina there is no electoral climate. People's concern is about the economy, both for people who suffer from economic policy and for those who still support it," he explained. Córdoba questioned the ruling party's approach: "The government manages the perception of the day to day a lot, it does not have a long-term vision. They take measures with an eye to effect rather than effectiveness." He also warned about the social cost of the reforms requested by the IMF: "The government knows that it will have to take unpleasant measures, such as raising the retirement age. 70% of those interviewed in our surveys are against that reform." In electoral terms, Córdoba stressed that the ruling party lost support, but maintains a base. "The government lost adherence. Today 40% still support it, but there is 60% that focuses on an opposition vote. If the scenario remains stable, they could reach 40 or 45% of the votes. If it gets complicated, they could drop to 35%. They will never get the percentage they achieved in the second round that took them to the presidency [56% in November 2023]," he concluded. After the devaluation, tires become unattainable for many Argentines. The latest devaluation has had a direct impact on the price of many imported inputs, such as tires, where there was an immediate impact and there is strong uncertainty in the sector. "We received increases of 30% from an international tire brand and, since this is a sector where the profit margin is very small, that increase was disastrous for us," said Valery Ieromin, owner of a specialized store, to Cara o ceca. As for national brands, there were also increases, although more moderate: "The increases were 10% and it affected in a varied way. Today a tire is unattainable for many people," he said. According to Ieromin, although it cannot be said that they are 'expensive', the economic reality means that "today a tire costs approximately 200 dollars, but filling a tank of gasoline costs 80 dollars." The merchant also stressed that the devaluation generated confusion and lack of foresight: "This increase affected a lot because it was applied before it was known what was going to happen. There is a lot of uncertainty and the issue is that the dollar went down, but prices did not go down."
Original title: "El Gobierno argentino terminó recurriendo al FMI porque los dólares prometidos nunca llegaron"
Original description: El reciente acuerdo con el Fondo Monetario Internacional (FMI) no habría mejorado la percepción púb…