China-Singapore Jingwei, December 21 According to the British "Financial Times" Chinese website 21**, on Wednesday, Argentina auctioned a value of about 296 trillion pesos ($3.7 billion) of national debt denominated in local currency. Argentina** is seeking to address the rising short-term central bank arrears held by its creditors, which is an important step forward.
Investors with recent maturities, mainly Argentine banks, bought 964 trillion pesos of new government bonds due in 2025 and 2026, the report said. The yields on these two bonds are -1595% and -453%。
The short-term notes that Argentina is trying to phase out are reportedly issued by the country's central bank with the aim of absorbing excess pesos from the economy. The last ** relied on money printing to finance long-term fiscal deficits, resulting in excess pesos. Argentina's central bank has gone to print more money to pay surging interest on its debt. The country's debt now stands at 26 trillion pesos, equivalent to almost 10% of gross domestic product (GDP).
Amilcar Collante, an economist at the Universidad Nacional de La Plata, was quoted as saying that "increasing the public debt burden, while offering high interest rates and fulfilling their commitment to fiscal balance, means they will have to double down on austerity." This will be very tough for the Argentine economy, which has been in a high deficit for many years. (China-Singapore Jingwei app).
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