Argentina

Argentine dollar bonds fell the most since September after Economy Minister Martin Guzman criticized spending cuts proposed by the International Monetary Fund, highlighting the difficulties ahead in securing a new agreement, Bloomberg News reported. Notes maturing in 2041 dropped 1 cent to 32.8 cents on the dollar, the biggest decline since Sept. 20, according to data compiled by Bloomberg. Credit-default swaps widened the most in five weeks.

Argentine dollar bonds fell the most since September after Economy Minister Martin Guzman criticized spending cuts proposed by the International Monetary Fund, highlighting the difficulties ahead in securing a new agreement, Bloomberg News reported. Notes maturing in 2041 dropped 1 cent to 32.8 cents on the dollar, the biggest decline since Sept. 20, according to data compiled by Bloomberg. Credit-default swaps widened the most in five weeks.

Argentina’s economy expanded more than expected in September as tourism, manufacturing and construction picked up, offsetting political volatility that followed the government’s defeat in primary elections, Bloomberg News reported. Economic activity rose 1.2% from the previous month, double the median estimate of economists in a Bloomberg survey. From a year ago, growth slowed to 11.6%, according to government data published Tuesday. The government’s loss in the Sept.

Argentina's government plans to agree on its new multiyear economic plan with International Monetary Fund staff before sending the proposal to Congress, Economy Minister Martin Guzman said on local radio on Friday, Reuters reported. "First, we will seek to reach an agreement with IMF staff, and then it will be sent to Congress for ratification," the minister said in comments to local station Radio Con Vos. Earlier in the day, a government source, who asked not to be named, outlined the same plans in an interview with Reuters. The IMF did not respond to a request for comment.

Argentina, one of the world’s most prominent defaulters, is pushing for a new way to service debt: Instead of paying creditors with cash that’s on short supply in Buenos Aires, it wants them to recognize the country’s efforts to tackle climate change, Bloomberg News reported. “We need more flexibility to honor that debt,” President Alberto Fernandez said, at a United Nations climate summit, of about $46 billion that Argentina owes to the International Monetary Fund.

Argentina’s President Alberto Fernandez said the country is “absolutely” committed to reaching a deal with the International Monetary Fund, Bloomberg News reported. Fernandez at the same time made clear that his government won’t risk rushing into an agreement if it’s a poor one for Argentines, in comments delivered at the closing of an event with top business leaders. “We’ll keep discussing until we’re sure we’ll have the resources to make Argentina stand on its own two feet again,” he said.

The International Monetary Fund’s board of directors turned down a request by Argentina to discuss relief on the commissions the country pays for its record loan, a setback for the government of President Alberto Fernandez, Bloomberg News reported. In an informal meeting held last month, the board rejected a proposal to discuss temporary relief on so-called surcharges, which are the commissions charged to countries that use the lender’s credit lines extensively.

Argentina’s monthly inflation eased more than expected in August to a 13-month low as food and living cost increases lost some momentum, Bloomberg News reported. Consumer prices rose 2.5% in August from a month earlier, the lowest level since July 2020 and less than economists’ median estimate for a 2.9% increase. From a year ago, inflation reached 51.4%, one of the highest levels since President Alberto Fernandez took office in December 2019.

The Argentine government’s election loss on Sunday weakens Economy Minister Martin Guzman’s negotiating power with the International Monetary Fund over its record $45 billion debt, according to one of the nation’s former representatives with the fund, Bloomberg News reported. President Alberto Fernandez’s coalition was defeated in primary congressional races in the majority of Argentina’s provinces, as well as in the capital, reflecting discontent over rising poverty and 50% inflation ahead of the general midterms on Nov. 14.