earlyretirement
Moderator
Agree the timing of this is not good for Argentina. I saw this news this morning. I do not know if it is true or not but if so very bad news.I would guess if the IMF did not end up giving the more fresh funds Argentina is in trouble and Milei would probably be toast. The turmoil by his friend Trump couldn't have come at a worse time for Milei!
"In addition, the White House Special Envoy for Latin America Mauricio Claver-Carone announced that the United States' support to the Libertarian administration before the IMF would hinge on Buenos Aires cutting all ties with Beijing, specifically the currency swap agreement brokered during the previous Government of Alberto Fernández and extended during the current one.Despite Milei’s ideological shift away from Beijing, China remains a vital economic partner for Argentina—its second-largest trading partner after Brazil—and is heavily involved in sectors like infrastructure, energy, and telecommunications. Ending the swap would require Argentina to repay a large sum it currently lacks.“I am not going to interfere in the middle of the negotiations that are taking place with the IMF, which we want to be successful,” Claver Carone was quoted as saying. “What we do want is that eventually the famous credit line that Argentina has with China ends,” he added.In the meantime, consensus has been reported to be absent among the IMF's board on an advance disbursement, despite positive remarks from Managing Director Kristalina Georgieva.
Advancing money to Argentina, a practice known as frontloading, generates controversy because any financing for the country before its next principal payment to the IMF would be considered fresh funds, which would increase the multilateral's exposure to the nation, it was explained.This week's rejection by the Senate of Milei's two Supreme Court nominees, coupled with his rift with Vice President Victoria Villarruel and treason charges for his April 2 Malvinas/Falklands speech, portray a declining head of State badly in need of funding to keep his administration going."
Claver-Carone and the USA's insistence for Argentina to end all ties with China are ridiculous. Argentina needs China more than ever. China is more of an essential partner and Milei already goofed up at the beginning of his term distancing himself from China. If the IMF funds don't come though, Milei is going to be in a terrible situation.

Argentine financial markets record setback after Milei's failed mission
Argentine financial markets experienced a sharp decline Friday amid the global economic storm triggered by a trade war between the U.S. and China following President Donald Trump’s tariffs spree. The market downturn, compounded by a nearly 7% drop in oil prices and a 10-year U.S. rate at 3.87%...