FIEL’s Chief Economist, Daniel Artanadescribed as “rude” the cost cuts announced by Batakis, although he considered that it would be “asking for pears from the elm tree” for the Government to present a more elaborate plan.
“They are going to make a cash adjustment and unify the accounts of the public sector. The big question is whether the vice president (Cristina Kirchner) is going to support”Argana explained in statements to Radio Rivadavia.
The chief economist of FIEL indicated that “the question is whether they will comply with this” considering that the announcement is “somewhat rude”
“With this, the deficit drops to zero. The question is whether this is sustainable. As with the tariffs, the vice president is reluctant to this type of measure,” he said.
On the other hand, Artana recalled that Argentina promised before the IMF not to appreciate the exchange rate.
The analyst said that “the cash adjustment is very precarious and very primitive because they are going with the ax to cut what they can.”
For his part, the economist Gabriel Caamano He said that “in the form it seems to announce a zero deficit cash base” for which he considered that it is necessary “to see in practice and how it is defined, if it is discretionary implementation, the announcement will not have much effect.”
Regarding the modification of the Financial Administration Law to include more agencies in the budget under the single account system, he maintained that “at time zero it adds more resources than expenses.”
“Would the result improve with a budget modification? You have to see it finite” Caamaño wondered.
In relation to the formation of the Court for the Defense of Competition as an instrument to control prices, he argued that “it should not be for that, but to guarantee competition.”
Regarding the objective of having positive interest rates, the economist maintained that “that has been going on for a long time, and it will never be reached”, for which he considered: “I don’t think this announcement will have much effect like this.”
While, Miguel Kiguelhead of the consulting firm Econviews indicated that “Batakis announced that he was leaving at positive real interest rates.”
“With average inflation of between 5 and 6% or more, nominal rates of more than 60% are required, and that is conservative. Shall we go there?” raised the former finance secretary.
Source: Ambito
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