{"id":34895,"date":"2018-06-08T06:13:50","date_gmt":"2018-06-08T11:13:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=34895"},"modified":"2018-06-08T06:13:50","modified_gmt":"2018-06-08T11:13:50","slug":"argentina-bailed-out-with-biggest-ever-loan-in-imf-history","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=34895","title":{"rendered":"Argentina Bailed Out With Biggest Ever Loan In IMF History"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-06-07\/argentina-bailed-out-biggest-ever-loan-imf-history\"><span class=\"field field--name-title field--type-string field--label-hidden\">Argentina Bailed Out With Biggest Ever Loan In IMF History<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1488\" data-gtm-vis-first-on-screen-2077925_22=\"1488\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<div class=\"a2a_kit a2a_kit_size_32 a2a_default_style\" data-a2a-icon-color=\"#222\">\n<div>Just a few weeks after Argentina became ground zero for the coming Emerging Market crisis, when its currency suddenly collapsed at the end of April amid soaring inflation, exploding capital outflows and a central bank that was far behind the curve (as in &#8220;13% of rate hikes in a week&#8221; behind)&#8230;<\/div>\n<\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/ARS%206.7.jpg?itok=gaWtin74\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/ARS%206.7.jpg?itok=gaWtin74\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/ARS%206.7.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/ARS%206.7.jpg?itok=gaWtin74 1x\" alt=\"\" width=\"500\" height=\"281\" data-entity-type=\"file\" data-entity-uuid=\"4cadbbf4-53a6-4a34-8e1d-16f65bdc1de6\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>&#8230; the IMF has officially <a href=\"http:\/\/www.imf.org\/en\/News\/Articles\/2018\/06\/07\/pr18216-argentina-imf-reaches-staff-level-agreement-with-argentina\">bailed out the country <\/a>&#8211; again &#8211; this time with a $50 billion, 36-month stand-by loan, <strong>and coming in <a href=\"https:\/\/marcelobonelli.cienradios.com\/caputo-les-comunico-los-banqueros-acuerdo-fmi-estaria-cerrado\/\">about $10 billion more <\/a>than rumored earlier in the week, it was the largest ever bailout loan in IMF history<\/strong>, meant to help restore investor confidence in a nation that, between its soaring external debt and current account deficit, <a href=\"https:\/\/www.zerohedge.com\/news\/2018-05-31\/why-turkey-and-argentina-are-doomed-one-jpmorgan-chart\">prompted JPMorgan to suggest <\/a>that along with Turkey, Argentina is in effect, doomed.<\/p>\n<p>As the JPM chart below shows, the country\u2019s total budget deficit, which includes interest payments on debt, was 6.5% of GDP last year, much of reflecting a debt binge of about $100 billion over the last two and a half years. The primary fiscal deficit in 2017 was 3.9%.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/turkey%20argentina.jpg\" data-image-external-href=\"\" data-image-href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/turkey%20argentina.jpg\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/turkey%20argentina.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/turkey%20argentina.jpg?itok=ZdWL7wq6 1x\" alt=\"\" width=\"500\" height=\"328\" data-entity-type=\"file\" data-entity-uuid=\"cdae3a8e-bbd1-49a4-b36b-5899444809e0\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>The loan will have a minimum interest rate of 1.96% rising as high as 4.96%.<\/p>\n<p>\u201cWe are convinced that we\u2019re on the right path, that we\u2019ve avoided a crisis,\u201d Finance Minister Nicol\u00e1s Dujovne said at a press conference in Buenos Aires. \u201cThis is aimed at building a normal economy.\u201d<\/p>\n<p>Dujovne said that about $15 billion from the credit line would be immediately available to Argentina after the package is approved by the IMF\u2019s board, which is expected on June 20. The rest would be dispersed as needed as Argentina meets its targets.<\/p>\n<p>Shortly after the news the loan was finalized, Dujovne made some additional, more bizarre comments, saying that &#8220;the amount we received is 11 times Argentina\u2019s quota, which reflects the international community\u00b4s support of Argentina,&#8221; almost as if he was proud at just how insolvent his country &#8220;suddenly&#8221; become.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Argentina Bailed Out With Biggest Ever Loan In IMF History Just a few weeks after Argentina became ground zero for the coming Emerging Market crisis, when its currency suddenly collapsed at the end of April amid soaring inflation, exploding capital outflows and a central bank that was far behind the curve (as in &#8220;13% of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2251,2015,6525,122,1732,418,426,434],"class_list":["post-34895","post","type-post","status-publish","format-standard","hentry","category-economics","tag-argentina","tag-bailout","tag-capital-outflows","tag-central-bank","tag-emerging-markets","tag-imf","tag-inflation","tag-international-monetary-fund"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34895"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34895\/revisions"}],"predecessor-version":[{"id":34896,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34895\/revisions\/34896"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}