Argentina is the IMF's primary debtor, owing to it $46 billion. For the organization, this represents almost one-third of its total debts. It is now urgent that in the talks and subsequent negotiations with the Fund, it is possible to postpone this year's maturities, which amount to $3.65 billion in principal and close to $1 billion in interest. Argentina's interest payments are almost half of what the IMF will charge all countries for that concept. Argentina is a good client for the Fund and a significant contributor to the Fund's annual cash flow.
The International Monetary Fund's executive directors are discussing a new allocation of special drawing rights (SDRs) of $650 billion to boost reserves and help the global recovery of Covid-19. For Argentina, this would mean an income in the order of $4.35 billion.
Due to the pandemic's effect, the country's Gross Domestic Product (GDP) contracted by 9.9% in 2020. During the past year, declines in all components of aggregate demand; fell of exports by 17.7%, private consumption drop by 13.1%, investment fell by 13%, and public consumption decrease by 4.7%; resulted in the fall in GDP. In the last quarter, the economy grew 4.5% concerning the previous quarter.
Argentina is the second-fastest-growing e-commerce market globally and grew significantly amid the pandemic (55% in 2020). The projection is that it will double by 2024, according to a survey of 41 countries conducted by the multinational financial technology company FIS. It projects to grow by 29% annually over the next four years.
The state-owned oil company YPF paid on Tuesday $172 million correspondings to principal and interest of the Class XLVII Negotiable Obligation. The company could access the official foreign exchange market without problems in line with the authorization it received from the Central Bank due to the international debt exchange completed in February.
Within the framework of the presentation of the Argentine Forestry Industrial Council (ConFIAr), representatives of the forestry chain presented the government with medium and long-term productive investment projects for $7 billion to boost the activity throughout the country. The value chain combines labour-intensive activities with other capital-intensive ones, which benefits the country and gives strength to the whole industry.