The Central Bank released $ 285,000 million a year, almost half of the ceiling agreed with the IMF

The Central Bank transferred $ 83,000 million to the Treasury, the second shipment in just 10 days. The entity headed by Miguel Ángel Pesce transferred the funds to him last Friday, after the difficulties experienced in April by the Ministry of Economy to renew debt maturities in the peso, now the main source to finance the red in public accounts.

Data found before the April inflation spread of 6%, a level lower than 6.7%in March and that in year-on-year terms it reached 58%, the highest level in 30 years. . The Minister of Economy, Martín Guzmán, recognized on Wednesday night the need to “lower the broadcast”, challenging Cristina Kirchnerwho denied that inflation was due to the “small machine”.

The temporary advancement of funds coincided with greater needs in financial matters. According to the Congressional Budget Office (CBO), The primary deficit jumped nearly 500% year-on-year in April due to increased spending above collectiondriven by energy subsidies, public works, transfers to the provinces and social benefits.

In this way, help from the BCRA accumulated in the year $ 285,000 million, almost half of the 1% guideline agreed with the IMF by 2022 (about $ 700 billion). While Central still has a margin to accomplish this, analysts believe it will catch up in the last quarter, when costs rose sharply.

“It becomes very complicated to meet the issuance goal by the end of the year. Beyond the seasonality of revenue from withholdings, the Government needs to keep the collection above inflation because the extraordinary income tax is too delayed and then the greater the cost to compensate for the increase in spending, ”said economist Jorge Neyro.

To supply your needs, the State uses the collection, the placement of debt or the disbursement of money. The last financial source regained momentum in April, a month in which income grew below inflation due to lower value exported and where getting a loan using bonds covers only 90% of the payments.

“We came from a month of low refinancing (since finance chose to reduce the CER and offer more nominal, bet it didn’t go well but they could for the cushion left in the first quarter). The issue of these last days is understood in this context. They still have space to be broadcast between now and the end of June, ”he said John Paul Albornozfrom Ecolatina.

After the bad inflation figure, The loan auction next Thursday will be key to testing the market in a month with maturity for $ 879,000 million, the largest in years. Also, Kirchnerism and Sergio Massa projects to relieve revenue. Without the advance of the unexpected income tax, they will be another challenge in the box that Guzmán and the IMF are monitoring.

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