He argued that “the best path is the path of this agreement, which does not have structural reforms, there is no labor reform, there is no pension reform,” and that it also “provides real growth in spending.”
In this sense, Pesce considered that “the objective of accumulation of reserves is something that without the Fund we had to do as well.”
Asked about the scenario in case the agreement is not signed, he said that “it would be very serious, not only the effect of the disbursements of the Fund on the reserves, in the years 2007, 2010, 2011 direct foreign investment was 3,500 million of dollars per year, we are at 700 million dollars per year, that also affects our exchange balance”.
“No economy can grow when it has to pay 25% of its exports to a multilateral organization: I believe that overcoming this barrier is going to change the expectations of the private sector, we are going to have more investment and more production,” he added.
About the inflation, Pesce pointed out that “we are in a context of very strong turbulence, we already came with very high levels of inflation, we need to moderate those levels and inflation.”
“It has been raised in the agreement with the Fund in this way and we are going to insist on that inflation path and for this we have to deal with extraordinary increases in wheat, corn and fuels. Our main objective is to moderate inflation levels” , he remarked.
Pesce maintained that the reduction of the monetary issue from 3.7% to 1% of GDP “is an achievable goal”, given that “tax collection has been reacting positively” and that “it is possible that we will grow more” than expected this year.
“If we grow more we will collect more and that will help meet the fiscal goals that are established in the agreement,” he added.
Regarding the international context, he affirmed that “we are in a global crisis of unusual depth, I believe that it could have consequences as serious or much more serious than the 2008-2009 crisis because we are facing a structural crisis, not a financial one, with distortions of unexpected extraordinary prices”.
“We are with record historical prices for wheat”, for which “we are working with the Minister of Economy, the Minister of Production, the Minister of Agriculture and the Secretaries of Energy and Commerce, to try to find a solution and that this does not end up hitting the table of the Argentines,” he concluded.
Source: Ambito
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