Central Bank of Argentina says it can help the government with debt payments

This Monday, the 27th, the Central Bank of Argentina announced that there is the possibility of him helping the country's government to pay its debt in foreign currency and in pesos. According to the communiqué, the entity will assist the Union when strictly necessary.

The autarchy also revealed that it may grant financing in local currency, always seeking to respect the balance of the money market. Do you want to understand the economic situation in Argentina and find out about the objectives of the Central Bank of that country? Then keep reading our article!

More details from the Central Bank of Argentina statement

The Central Bank of the country made clear, in its communiqué, its understanding that its participation in the payment of public debts should happen exceptionally.

With regard to Argentina's economic situation, it is important to state that the country is currently in the process of restructuring its public debt, which amounts to approximately US1TP4Q 100 billion. The commitments that the country has with the International Monetary Fund (IMF) form part of Argentina's public debt.

The BC also added in its report what are its guidelines for 2020. According to the entity, one of its objectives is to reduce inflation levels this year. It is worth mentioning that in 2019, the price peak reached 53%.

The autarchy also intends to maintain a “managed fluctuation” of the country's currency, as well as take the necessary measures so that interest rates do not “fall into real negative levels”. The entity highlighted, with regard to rates, that it expects to gradually reduce the inflation rate in a sustainable manner.

This process, according to her, must have a prudent and consistent focus on monetary policy, which must be aligned with the rest of the policies promoted by the Argentine government.

Final considerations

That said, we News Report we hope we have clarified what the Central Bank said about the possibility of helping the government to pay its debt. With that in mind, tell us what you think about the economic situation in Argentina. Also comment on what you thought of BC's statement and if you agree with the objectives of that institution.

Also, if you want to read more news like this one, which deals with the declaration of Central Bank of Argentina, keep following our website! We have many interesting articles waiting for you!

 

Source: G1