On 29 August, Argentina's president, Mauricio Macri, announced plans to speed up the disbursement of a $50 billion Stand-by Arrangement (SBA) loan by the International Monetary Fund (IMF). His statements raised the alarm that the country was unable to finance itself, sending the emerging markets into a tailspin. On 31 August, the Argentine peso reached a record low of ARS 41 to the USD 1. The central bank responded by increasing interest rates to 60% The government is currently undergoing negotiations with the International Monetary Fund (IMF) to redesign the SBA signed earlier this year.
The currency crisis has negatively impacted financing and risks slowing down investment across multiple industry sectors in Argentina. As for renewables, even if the projects in RenovAr are shielded from currency and off-taker risks, these protections may not be considered sufficient for potential financiers.
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