Guzmán will receive on Wednesday representatives of the Association of Argentine Banks (ADEBA) and the next day it will be the turn of the Association of Foreign Banks (ABA).
The talks were scheduled last week with the aim of trying to calm the markets, after the collapse of bonds in pesos, the rise in Country Risk to 2,200 basis points and the rise in the dollar of more than 10% in 10 days.
The meeting with the banks is something habitual, the dialogue is permanent, they said from the Ministry of Economy, but the meetings this week will be colored by the particularity that the markets begin to distrust the debt sustainability.
“Whoever says that in Argentina the public debt denominated in pesos is unsustainable really has no idea what he is talking about and would not pass a basic exam in college,” the minister said in an interview with the Rosario newspaper “La Capital” on Sunday. .
The head of the Palacio de Hacienda remarked: “we have made an absolute commitment to strengthening the public debt market in pesos, which we rebuilt so that in Argentina there is first more financing capacity in the public sector, and a healthier one. What is announced is a set of fully coordinated actions between Economy and the Central Bank so that Argentina has a faster reserve accumulation path”.
Guzmán will seek to clarify the doubts of the bankers and finish defining the next tools to order the turbulence unleashed on June 8 last, when CER bonds fell 12% due to sales ordered from the Carlos Pellegrini fund of Banco Nación.
The official reading is that there was a “dissociated” behavior of the prices of assets in pesos, which required a series of “stabilization” measures, led by purchases by the Central Bank.
The combo included the purchase of Treasury bonds, the rise in rates and the acceleration of the dollar by the Central Bank, together with signals from the Minister of Economy such as the formalization of the removal of energy subsidies and a budget with a growth of spending 51% below the level of projected inflation, up to 62%.
A reaction that was required by the IMF, but that was seen as late in the market. One of the challenges will be to restore confidence in Treasury debt instruments.
Source: Ambito
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