Many people are saying on social media that some leader or country has sent Argentina 40 Billion Dollars to Argentina. But in reality, that’s not the case. This is half-true and half-false. The truth is that the entire Argentina 40 Billion Dollars wasn’t sent as a gift or aid; rather, $20 billion of it was a private loanโmeaning that some private companies or banks in Argentina borrowed money from foreign countries, which they must repay with interest.
Now, regarding the remaining $20 billion, it’s not cash, but a currency swap. This means that the two countries have entered into an agreement to exchange their currencies to facilitate trade. Think of it as India and Argentina saying, “You take our rupees, and we take your pesos,” so that both countries can trade without dollars. There’s no actual “sending” or “donation” involved.
So, when someone claims that Argentina 40 Billion Dollars was sent, that’s not true. In reality, this money is in different formsโa $20 billion loan and a $20 billion currency agreement.
Now, let’s talk about the 50-year mortgage, which is being widely discussed. Simply put, a mortgage can be called a “home loan”โthat is, when someone wants to buy a house but doesn’t have the money all at once, the bank gives them a loan, and they pay it back in EMIs every month.
Typically, people take out 15- or 30-year loans. But now, a 50-year mortgage has been introduced so that first-time buyers can also purchase a home. Because the longer the loan term, the smaller the monthly installment.
For example, if you’re buying a house worth 3 million, your EMI will be higher with a 30-year loan, but if the same loan is spread over 50 years, the EMI will be lower. This doesn’t mean that people will continue to pay off the loan for 50 yearsโsometimes they refinance after a few years, meaning they switch banks or take out a new loan, which lowers the interest rate.
In fact, the purpose of this 50-year mortgage is to provide relief to people initially so they can start living in their first home. Later, when their income increases or interest rates decrease, they can shorten the loan.
But, no sensible person expects to pay interest for 50 years. If the interest rate is very goodโlike 3.25%โthen someone might find it beneficial to have a longer loan.
So, the bottom line is that didn’t get Argentina 40 Billion Dollars for free, nor is a 50-year loan a loss. Misunderstanding both these things is leading to rumours, whereas the reality is very simple and understandable โ everything is based on the financial structure and loan system, not on gifts or free money.
