{"id":2826,"date":"2023-10-18T17:45:45","date_gmt":"2023-10-18T17:45:45","guid":{"rendered":"https:\/\/inbudgetalerts.com\/business\/argentina-taps-chinese-credit-line-to-keep-economy-afloat-during-elections\/"},"modified":"2023-10-18T17:45:45","modified_gmt":"2023-10-18T17:45:45","slug":"argentina-taps-chinese-credit-line-to-keep-economy-afloat-during-elections","status":"publish","type":"post","link":"https:\/\/inbudgetalerts.com\/?p=2826","title":{"rendered":"Argentina taps Chinese credit line to keep economy afloat during elections"},"content":{"rendered":"<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=c92e56b7-e619-4cbb-b615-e401140c10cc\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Sergio Massa, Argentina\u2019s economy minister and the presidential candidate for the ruling centre-left Peronist coalition, has borrowed another $6.5bn-worth of renminbi from Beijing in a last-ditch effort to stabilise the economy ahead of elections on Sunday.<\/p>\n<p>President Alberto Fern\u00e1ndez, who is not running for a second term, announced the expansion during a visit to China on Wednesday.<\/p>\n<p>Amid its worst economic crisis in two decades, Argentina\u2019s international reserves have fallen to dangerously low levels, forcing it to draw on a currency swap line between its central bank and the People\u2019s Bank of China. <\/p>\n<p>The Central Bank of Argentina first began to tap the $18bn facility in April and has spent just under $5bn-worth of renminbi mostly to help Argentine companies pay for imports and to free up cash to shore up the peso.<\/p>\n<p>Massa told a local radio station on Wednesday that the latest tranche would be used in the same way, and also to \u201cpre-pay\u201d repayments on Argentina\u2019s loan from the IMF.<\/p>\n<p>\u201cIt\u2019s great news, it\u2019s news that will help to calm [markets] a lot and give us more room to manoeuvre,\u201d he said.<\/p>\n<p>Massa is competing on Sunday\u2019s presidential elections against outsider libertarian candidate Javier Milei and mainstream rightwinger Patricia Bullrich. Polls suggest Milei will make it to a second round run off on November 18, competing against either Massa or Bullrich.<\/p>\n<p>Argentina has about $2.6bn of repayments coming due to the IMF in October as part of its troubled $44bn arrangement. Entering into arrears risks further unsettling markets that have been rocked by pre-election uncertainty following Milei\u2019s unexpected first-round win and annual inflation hitting 138 per cent in September. <\/p>\n<p>Argentina\u2019s foreign currency reserves excluding liabilities are estimated to be $7.6bn in the red. <\/p>\n<p>Salvador Vitelli, head of research at Buenos Aires-based consultancy Romano Group, which calculated the scale of the shortfall in official reserves, said the swap would allow Massa to \u201cavoid having to search for dollars\u201d to make its repayments to the IMF. The renminbi is one of five currencies in which the fund will accept loan repayments. <\/p>\n<p>Vitelli said the latest renminbi tranche would also potentially free up cash for Argentina to intervene in parallel exchange markets, though it was unclear if the yuan themselves could be used to prop up the peso.<\/p>\n<p>The Argentine currency has lost almost two-thirds of its value on parallel exchange markets over the past 12 months, and is at a near-record low of 972 pesos to the dollar. Analysts said a peso below the psychological barrier of 1,000 to the dollar could hurt Massa\u2019s electoral chances.<\/p>\n<p>Argentina\u2019s government has not disclosed the rate of interest it pays on the China swap, and Bullrich criticised the deal in an interview with the Financial Times on Monday.<\/p>\n<p>\u201cWe believe that in some of the latest [Chinese] loans there are clauses which we don\u2019t know about and we are ready to re-examine them,\u201d she said.<\/p>\n<p>Milei, meanwhile, has said he would not pursue diplomatic relations with China, which is Argentina\u2019s largest trading partner. He has described the Chinese government as \u201cmurderous communists\u201d.<\/p>\n<p>Massa\u2019s foreign relations adviser Gustavo Mart\u00ednez Pandiani told the Financial Times that the rate paid on the China swap was \u201cvery favourable for Argentina compared to that charged by other international credit organisations\u2009.\u2009.\u2009.\u2009including the IMF\u201d.<\/p>\n<p>He added the fund had been \u201cinflexible\u201d in late June, when Argentina came close to entering into arrears because the IMF would not release funds that Buenos Aires was counting on to make another repayment to the fund. Argentina ended up using $1bn of the China swap to make the repayment.<\/p>\n<p>\u201cThis clearly shows that there is a transformation under way in the actors in international financial matters,\u201d Pandiani said. \u201cWhat the IMF is achieving with its sometimes inflexible attitude, is to end its [time] as the only lender of last resort for countries.\u201d<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/c92e56b7-e619-4cbb-b615-e401140c10cc\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Sergio Massa,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-2826","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Argentina taps Chinese credit line to keep economy afloat during elections | InBudgetAlerts<\/title>\n<meta name=\"description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Sergio Massa, Argentina\u2019s\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/inbudgetalerts.com\/?p=2826\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Argentina taps Chinese credit line to keep economy afloat during elections | InBudgetAlerts\" \/>\n<meta property=\"og:description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Sergio Massa, Argentina\u2019s\" \/>\n<meta property=\"og:url\" content=\"https:\/\/inbudgetalerts.com\/?p=2826\" \/>\n<meta property=\"og:site_name\" content=\"InBudgetAlerts\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-18T17:45:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/inbudgetalerts.com\/wp-content\/uploads\/2023\/10\/tech-wall.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/inbudgetalerts.com\/?p=2826#article\",\"isPartOf\":{\"@id\":\"https:\/\/inbudgetalerts.com\/?p=2826\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/inbudgetalerts.com\/#\/schema\/person\/5fadb0c23fa3bfd2762b1a5dcce46da3\"},\"headline\":\"Argentina taps Chinese credit line to keep economy afloat during elections\",\"datePublished\":\"2023-10-18T17:45:45+00:00\",\"dateModified\":\"2023-10-18T17:45:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/inbudgetalerts.com\/?p=2826\"},\"wordCount\":688,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/inbudgetalerts.com\/#organization\"},\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/inbudgetalerts.com\/?p=2826#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/inbudgetalerts.com\/?p=2826\",\"url\":\"https:\/\/inbudgetalerts.com\/?p=2826\",\"name\":\"Argentina taps Chinese credit line to keep economy afloat during elections | InBudgetAlerts\",\"isPartOf\":{\"@id\":\"https:\/\/inbudgetalerts.com\/#website\"},\"datePublished\":\"2023-10-18T17:45:45+00:00\",\"dateModified\":\"2023-10-18T17:45:45+00:00\",\"description\":\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Sergio Massa, Argentina\u2019s\",\"breadcrumb\":{\"@id\":\"https:\/\/inbudgetalerts.com\/?p=2826#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/inbudgetalerts.com\/?p=2826\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/inbudgetalerts.com\/?p=2826#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/inbudgetalerts.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Argentina taps Chinese credit line to keep economy afloat during elections\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/inbudgetalerts.com\/#website\",\"url\":\"https:\/\/inbudgetalerts.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/inbudgetalerts.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/inbudgetalerts.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/inbudgetalerts.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/inbudgetalerts.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/inbudgetalerts.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/inbudgetalerts.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/inbudgetalerts.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/inbudgetalerts.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/inbudgetalerts.com\/#\/schema\/person\/5fadb0c23fa3bfd2762b1a5dcce46da3\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/inbudgetalerts.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/inbudgetalerts.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/inbudgetalerts.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/inbudgetalerts.com\"],\"url\":\"https:\/\/inbudgetalerts.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Argentina taps Chinese credit line to keep economy afloat during elections | InBudgetAlerts","description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Sergio Massa, Argentina\u2019s","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/inbudgetalerts.com\/?p=2826","og_locale":"en_US","og_type":"article","og_title":"Argentina taps Chinese credit line to keep economy afloat during elections | InBudgetAlerts","og_description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Sergio Massa, Argentina\u2019s","og_url":"https:\/\/inbudgetalerts.com\/?p=2826","og_site_name":"InBudgetAlerts","article_published_time":"2023-10-18T17:45:45+00:00","og_image":[{"width":1920,"height":1200,"url":"https:\/\/inbudgetalerts.com\/wp-content\/uploads\/2023\/10\/tech-wall.jpg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/inbudgetalerts.com\/?p=2826#article","isPartOf":{"@id":"https:\/\/inbudgetalerts.com\/?p=2826"},"author":{"name":"Press Room","@id":"https:\/\/inbudgetalerts.com\/#\/schema\/person\/5fadb0c23fa3bfd2762b1a5dcce46da3"},"headline":"Argentina taps Chinese credit line to keep economy afloat during elections","datePublished":"2023-10-18T17:45:45+00:00","dateModified":"2023-10-18T17:45:45+00:00","mainEntityOfPage":{"@id":"https:\/\/inbudgetalerts.com\/?p=2826"},"wordCount":688,"commentCount":0,"publisher":{"@id":"https:\/\/inbudgetalerts.com\/#organization"},"articleSection":["Business"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/inbudgetalerts.com\/?p=2826#respond"]}]},{"@type":"WebPage","@id":"https:\/\/inbudgetalerts.com\/?p=2826","url":"https:\/\/inbudgetalerts.com\/?p=2826","name":"Argentina taps Chinese credit line to keep economy afloat during elections | InBudgetAlerts","isPartOf":{"@id":"https:\/\/inbudgetalerts.com\/#website"},"datePublished":"2023-10-18T17:45:45+00:00","dateModified":"2023-10-18T17:45:45+00:00","description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Sergio Massa, Argentina\u2019s","breadcrumb":{"@id":"https:\/\/inbudgetalerts.com\/?p=2826#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/inbudgetalerts.com\/?p=2826"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/inbudgetalerts.com\/?p=2826#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/inbudgetalerts.com\/"},{"@type":"ListItem","position":2,"name":"Argentina taps Chinese credit line to keep economy afloat during elections"}]},{"@type":"WebSite","@id":"https:\/\/inbudgetalerts.com\/#website","url":"https:\/\/inbudgetalerts.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/inbudgetalerts.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/inbudgetalerts.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/inbudgetalerts.com\/#organization","name":"Fintech Advance","url":"https:\/\/inbudgetalerts.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/inbudgetalerts.com\/#\/schema\/logo\/image\/","url":"https:\/\/inbudgetalerts.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/inbudgetalerts.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/inbudgetalerts.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/inbudgetalerts.com\/#\/schema\/person\/5fadb0c23fa3bfd2762b1a5dcce46da3","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/inbudgetalerts.com\/#\/schema\/person\/image\/","url":"https:\/\/inbudgetalerts.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/inbudgetalerts.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/inbudgetalerts.com"],"url":"https:\/\/inbudgetalerts.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/inbudgetalerts.com\/index.php?rest_route=\/wp\/v2\/posts\/2826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inbudgetalerts.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/inbudgetalerts.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/inbudgetalerts.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/inbudgetalerts.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2826"}],"version-history":[{"count":0,"href":"https:\/\/inbudgetalerts.com\/index.php?rest_route=\/wp\/v2\/posts\/2826\/revisions"}],"wp:attachment":[{"href":"https:\/\/inbudgetalerts.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/inbudgetalerts.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/inbudgetalerts.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}