Guzmán indicated that, to attack “the multiple factors that generate inflation, the first thing we need is to calm expectations and, if there is a shortage of international reserves, there is no way.” And also that “we have to recover the purchasing power of income.”
He also warned that the reduction of the primary deficit “is not enough” by itself to lower inflation, but “it is essential” for that to happen.
Guzmán also considered that improving the public debt profile “is essential to lower inflation” and stressed that, in order to achieve this objective, “it is essential to reduce the primary deficit.”
The Economy Minister indicated that the first disbursement from the International Monetary Fund (IMF) within the framework of the agreement reached with the Argentine government will be 7,000 million Special Drawing Rights (SDR), equivalent to “9,800 million dollars.”
And he pointed out that this disbursement will enter “if the Congress of the Nation approves the program and also the IMF Board”, and that this income would materialize “that same day or the next day”.
The Minister of Economy confirmed that “nobody is going to experience increases greater than wages” in public service rates, with the exception of the 10% of the population with the “greatest economic capacity.”
“The agreement (with the IMF) establishes that, to the extent that the segmentation (rate) is made, the rest of the scheme cannot be touched,” Guzmán said.
The agreement sealed with the International Monetary Fund (IMF) is “the only possible way” to meet the payment of the commitments derived from the loan granted in 2018, said Economy Minister Martín Guzmán.
“No one from our political force likes that the IMF is in Argentina, but it was already there when this government took office,” said Guzmán. “No one wants the IMF in Argentina, but there is a reality and it is the debt,” he said.
Finally, Guzmán assured that the government of Mauricio Macri “has done damage to Argentina of a magnitude for which it is difficult to find precedents.” “The (International Monetary) Fund itself accepted it in the evaluation” that it made of the 2018 stand-by loan agreed with the Macrista government.
“There was no need to go to the IMF, it was an election. We saw support for a government,” he concluded.
Source: Ambito
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