Report Wall Street Italia
Of Alessandra Caparello
A financial debacle that reopens old wounds for Argentines in recent days with the national currency, the weight, under the threat of hyperinflation and a president Mauricio Macri which to save the economy and spare its people from a new financial crisis is asking for help from the International Monetary Fund.
Although the central bank of Argentina has decided for a huge increase in the rates three times since 27 April, issandoli al 40%, the peso continued to collapse and the president had to do resort to International Monetary Fund, looking for a standby agreement for a loan of at least 30 billions of dollars (although other sources even talking about 50 billion). Which means on standby? Which wouldn't be cashed in right away, but used if the situation worsens further.
The condition for Argentina to obtain the loan is that it achieves a series of economic objectives, for example on the front ofinflation and of monetary policy. Interest rates were brought up in a few days 40% precisely to prevent a devaluation of the peso (-20% In the 2018) and put a stop to the blaze in consumer prices. The cost of living for families has increased by 30% since January.

“It will be politically very difficult”, said Jorge Mariscal, Chief Investment Officer di UBS Global Wealth Management for emerging markets speaking to the Cnbc. “The opposition will try to sell it as: ‘Once again we are selling our staff to meet IMF conditions‘”.

The last time Argentina concluded a standby agreement withFmi it's almost 20 years ago when the country's unemployment rate had risen to 20 percent, wages had been reduced and people had withdrawn large sums of pesos from their own bank accounts to change them into US dollars.
Macri, elected in 2015, was hailed as the first market-friendly president in years but on Tuesday announced the intervention of the Fund led by Christine Lagarde spoke of a move that would help "avoid a crisis like the ones we've faced before", adding that “it will allow us to strengthen our growth and development program”.
But the Argentines didn't really like it and according to a survey three out of four are against the external loan aimed at combating the devaluation of the peso. So yesterday and today shouting “NO to the IMF” the Argentines take to the streets in protest sign against Macri's decision.
Source: http://www.wallstreetitalia.com/argentina-ricorre-allfmi-e-popolo-scende-in-piazza/?utm_source=newsletter&utm_medium=email&utm_campaign=Newsletter:+WallStreetItalia&utm_content=11-05-2018+argentina-recurs-allfmi-and-people-take-to-the-squares+close-up