The businessman analyzed US aid to the Government, the economic direction and the political panorama before the legislative elections on October 26.
Eduardo Costantini analyzed the impact of help that Javier Milei received from United States Treasury and assured that, although the economic announcements brought momentary reliefArgentina “it has to be devalued”. The economist considered that the assistance defused a financial crisisbut it does not resolve the structural imbalances.
Costantini qualified as “transcendent” American support and alignment with President Donald Trump, and highlighted the relevance of the legislative elections of October 26which he defined as “a compelling fact” for the political future of the country.
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In dialogue with radio Miter, he explained that “This aid dismantled a looming financial crisis”although he stressed that it is necessary to observe “the dynamics that are coming.” He also pointed out that the North American Treasury considers that “the peso is undervalued” and? “the dollar would have to be at the previous value or even lower.”
The founder of Malba agreed with the Minister of Economy, Luis Caputo, stating that “You cannot think of a country that is continuously devaluing at a significant rate”. According to his analysis, the exchange rate “continues to need to be updated on par with US inflationwhich is from 3% annually on average.”
The businessman maintained that Argentina “it has not recently achieved a current account surplus or an accumulation of reserves” facing the imminent payments of the foreign debt, and that the country needs “a balance of the exchange market that is compatible with a level of activity that generates employment and reasonable interest rates.”
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Governance and political scenario
Costantini considered that Governance is key to reducing country risk and stabilizing the exchange rate. He evaluated the Government’s dialogue-oriented turn as positive after the Buenos Aires elections of September 7 and pointed out that the legislative elections of October 26 will be decisive for Milei.
“I have uncertainty about this. Four or five months ago I thought that the Government won by four or five points in the general election. Today I have big doubts”he acknowledged. However, he added that “Treasury support will generate new political dynamics.”
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Om Radio
His position on Kicillof and corruption
Regarding his sayings about Axel Kicillofwhere he had declared that “Kicillof is honest and Milei is a very extremist person,” he clarified that he was referring to the lack of dialogue between the Buenos Aires governor and the President. ““I said that both (who have a different extreme thinking) are two prepared people who could perfectly sit down and discuss the differences for the good of the country,” he explained.
“I have never heard that Kicillof has committed an act of corruption for personal gain. However, I am a great critic and I spend hours not being able to believe the great scam they have done to us with YPF. And I greatly condemn the corruption of Kirchnerism, as there have also been acts of alleged corruption with this government (due to the $LIBRA case and the complaints of bribes in the National Disability Agency),” he concluded.
Source: Ambito
