The day before a primary election in which he is running for president to lead the troubled ruling coalition, Economy Minister Sergio Massa declared on Saturday that Argentina will sign loans with foreign lenders totaling $500 million next week
Massa also promised to present a “zero deficit” government budget for the next year that will not overspend in a ministry statement outlining economic objectives to be officially unveiled next week.
However, the 2024 budget is not expected to be discussed by lawmakers until September.
On Sunday, voters will cast their ballots in the mandatory national election, hoping to keep Massa’s center-left Peronist coalition in office despite widespread discontent over the protracted economic crisis typified by triple-digit inflation and the inexorable devaluation of the local peso.
According to the announcement, the $500 million in loans will be signed with the World Bank and the Inter-American Development Bank, increasing the critically low foreign reserves of the central bank.
A call for bids for a significant natural gas pipeline project and tax benefits allowing companies to use undeclared funds for imports were also announced by the government.
Argentine traders are closely monitoring Sunday’s election because it may provide insight into what will likely happen in the general election in October./Reuters