Newly appointed economy minister Sergio Massa speaks during a press conference in Buenos Aires, Argentina, August 3 2022. Picture: TOMAS CUESTA/GETTY IMAGES
Massa inherits the enormous challenge of taming inflation that’s now over 60% and expected to reach 90% by the end of this year. Cut off from international capital markets, Fernandez’s government has relied on money printing to cover its chronic fiscal deficit. The government will finance its budget by reducing its deficit or via private lending. The country is considering four loan offers by three international banks and a sovereign wealth fund, he said, without providing a figure of the potential deal.
Argentina’s central bank has already printed the equivalent of $4.8bn in pesos so far this year to finance government spending, meaning it only had $1bn left before hitting the ceiling for monetary financing laid out under the IMF programme.Investors said Massa needs to deliver more fine print details to assuage market concerns.
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