Public debt: Interest payments reached $7,629 million last year

Following the record cancellation of interest on public debt for the equivalent of US$19,442 million in 2019with the previous Government, during 2020/2022 with the current Government, disbursements also for interest added a total of US$21.775 million, despite the debt restructuring and swap, according to data from the Congressional Budget Office (OPC).

Of this total, the IMF received $4,374 million and the rest of the international financial organizations (such as the IDB, World Bank, among others) another $2,134 million.

In 2022, interest they consumed the equivalent of US$7,629 million.

Meanwhile, compared to the end of November 2019, the beginning of the administration of the current government, the gross public debt has increased from US$ 313,299 million to US$ 384,668 million: an increase of 22.8% equal to US$ 71,369 million.

Almost all of the increase in borrowing was in pesos adjusted for inflation which increased from the equivalent of US$ 23,791 million to US$ 68,275 million, an increase of 187%.

These values, both in principal and in interest, do not take into account the debt of the Provinces and the Central Bank.

Here is the report from the Congressional Budget Office:

• In 2020, interest disbursements reached an amount of USD 8,043 million, of which 46% made in foreign currency. Payments of bonds and letters represent 71% of the total, 26% being in foreign currency. The debt restructuring processes carried out during the year made it possible to reduction of the weight of interest in foreign currency. As regards interest payments to multilateral organizations, they amounted to 1,994 million US dollars, of which 65% (1,306 million US dollars) corresponded to the IMF Stand By loan.

• During 2021, interest write-offs totaled US$6,103 million, of which 36% was denominated in foreign currency. Bond and letter payments accounted for 67% of the total, 95% being in local currency. Interest payments to multilateral organizations amount to US$1,969 million, of which 68% (US$1,347 million) corresponds to the IMF stand-by loan.

• During 2022, interest payments totaled US$7,629 million, of which 53% was made in foreign currency. Bond interest represents 60% of the total, 69% being in local currency. Payments to multilateral organizations amount to US$2,545m, of which 68% (US$1,721m) is IMF loans.

Payments to the IMF are increasing – They went from US$ 1,228 million in 2019 to US$ 1,721 million in 2022 – due to the increase in the interest rate that bears the surcharges paid by Argentina for its level of debt with the financial institution and for new disbursements which have increased the level of debt.