In addition, he maintained that the administration of President Alberto Fernández “based its anti-inflationary strategy on a program with the Monetary Fundin which he promised to lower the fiscal deficit and the issuance to finance it”, which meant “placing debt above what is due in the local market, in addition to financing from multilateral organizations, and accumulating reserves”.
In radio statements, Artana pointed out that “Everything seems to indicate that in this first year of the program it will not meet any of the three goals.” “It does not meet them basically because fiscal spending is overwhelmed, and that goes beyond the impact of Russia’s invasion of Ukraine. All spending items are growing in real terms above inflation,” he said.
He also said that this “generates additional financing pressure” than expected and recalled that the Government “in the first quarter was able to place much more debt than was due, but that began to get complicated in April and May.”
“The doubts of the mountain of short-term debt began, which is enormous and Minister Martín Guzmán does not give him much ball because it is in pesos, but it must be addressed, and that is behind the fall in bonds this week” .
Regarding the concern of the markets, he explained that if one believes that they are going to “reprofile the debt at the beginning of the next administration, I am beginning to anticipate it, and the fear is that this management will reprofile you.”
“It is a moment of record liquidation of the field as has not been seen. There are plenty of dollars in Argentina, but the Central Bank buys very little. The dollars go to the BCRA because there is a significant gap and there is a national sport of trying to get cheap dollars from the Central Bank”he insisted.
Regarding those dollars, he said that “a part ends up pouring into alternative markets. You have a low gap because the BCRA does not accumulate reserves. If it had tightened the trap to accumulate reserves, the gap would be another. You do not have an economic program that closes or that comply”.
Source: Ambito
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