For Brod, the understanding implies a “relief” for both Argentina and the IMF. In addition, he assured that the approval of that agreement will come out approved by Congressbut considered that the legislative process “it will not be easy”.
Speaking to the “Cristina without turns” program, which is broadcast on Radio Rivadavia, the economist evaluated: “We are not talking about an agreement to get us out of the acceleration of decline of several decades or the hyper stagflation that we have. It’s just to avoid a major crisis.”.
“Now, as much as it is a superficial agreement, it is a corset that will limit some of the actions of the Government. That’s why everyone has uncertainty since nothing can be believed in this government“, he added.
IMF – GOVERNMENT
Broda predicted that The first two quarterly reviews that the agreement will have may be carried out by the Governmentbut warned that later “there will be uncertainty” whether it will be able to maintain that compliance.
In his opinion, the delay in closing an agreement “is because putting a little order in public accounts is against the nature of ruling populism. So the delay was on purpose.”
Economist and consultant Miguel Ángel Broda referred to the exchange rate crisis that Argentina is going through and pointed out that although the new leadership of the BCRA “comes to put out the fire”, the consequences will be experienced in the coming months.
In this framework, the economist warned that “Two agonizing years are coming, of extremely high growth, high inflation and a lot of volatility. Argentina is only going to survive”. And he concluded: “I think the country needs a decade or two with a plan that makes it a normal nation“.
Source: Ambito
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