Argentina is raising money through currency conversions, bond sales, debt paydowns and new borrowings in a move to cover fiscal expenses following the IMF’s decision to grant the country $4.3bn of special drawing rights (SDRs). The moves by President Alberto Fernandez’s administration will enable Argentina to spend $5bn, more than the IMF granted, and received skepticism over its ability to ever repay the funds. In the past, the central bank would allow Argentina to roll over bonds and enable it to borrow without fully paying back the debt. Analysts expect the government to use the cash to repay the IMF through the end of 2021 and to fund social programs prior to the November midterm election. Last week, the preliminary elections announced that the Juntos opposition party won key races in the congressional primaries, suggesting how voters might cast ballots in the November midterm. Fernando Marull, a director at Buenos Aires-based consulting firm FMyA, said “As the summer comes, the exchange rate will heat up and we’ll see pressure on the gap between the official and parallel rates.” “The economy has surplus pesos and few reserves in the central bank,” he added.

Argentina´s USD bonds were slightly up with its 2.5% 2041s up .29 to 37.5, yielding 9.62%

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