The manager will be the president of the 39th Congress of the Argentine Institute of Finance Executives (IAEF) which will take place on June 2 at the Convention Center Center.
What opportunities do Finance Executives see for Argentina in the future?
The impact brought by the situation in Ukraine with the rise in commodities is presenting a new opportunity for all of Latin America. Particularly for Argentina, due to its historic agricultural sector and the potential of Vaca Muerta. As a European banker told me days ago “the war may end soon but trust is broken”. Europe needs to look for alternative and reliable sources of supply. Argentina must work to ensure that trust, natural resources are undoubtedly there and are competitive by scale.
Today it is said that the curve of Argentine bonds “is inverted”, investors do not trust the long term. What is needed for the curve to “normalize”?
The basis of almost all financial assets – no matter how sophisticated they may be – is the perception of long-term trust. Basically be “Predictable”. Credit builds slow and collapses fast. The basic ingredients continue to be legal certainty, the stability of policies and clear rules over time and, in the case of bonds, the payment track record.
For investors, the confidence limit is 2024, it is as if they do not trust beyond that limit. Does it coincide with that?
I believe that it is advisable to separate short/medium-term financial investments from long-term strategic investments. As I mentioned before, the investment opportunity in the energy and agriculture sector exists, it is concrete and there is genuine export potential. They are the main sources of foreign currency that the country needs to strengthen its reserves. In this sense, I see a longer-term investment potential. The theme is to seize the opportunity by concentrating efforts and changing what is necessary to be reliable and predictable. On Thursday June 2 at the IAEF we will celebrate our Annual Congress at the Buenos Aires Convention Center in which there will be panels with leaders of these strategic industries to discuss and deepen these opportunities.
How is confidence rebuilt in a country with annual inflation in Argentina?
It’s a question for a seasoned economist, although I once read that Germany rebuilt itself after hyperinflation and losing two world wars. Closer and closer, we saw how Brazil, Bolivia and Peru suffered extreme inflations in the late 1980s/early 1990s and also overcame them. Today all of our neighbors are “investment grade” and enjoy good long-term credit. Regardless of the fact that there are surely several alternatives to achieve it, it seems that it will not be an impossible mission. The motto chosen in our Congress is precisely “Rebuild a better country”. We hope there to find concrete proposals to generate basic consensus and long-term sustainable policies, without forgetting monetary control and legal certainty.
Do you think that Argentina will have to sit down with its creditors again to renegotiate its debt?
Difficult to advance yet, we hope that the opportunities mentioned above can be developed and made viable, to strengthen the national financial situation and thus avoid a new renegotiation.
Source: Ambito
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