Bataki’s plan
The novelty intersects with the intention, advanced yesterday by this newspaper, regarding the will of Silvina Batakis and her team to establish some type of financial diplomatic bridge with the bondholders (at least the most important ones) to explain part of the guidelines of the announced package. last Monday, and that, in the eyes of Economy, aims fundamentally to give clarity to the financial markets about Argentina’s fiscal predictability. And to the support of the fundamental goal closed with the International Monetary Fund (IMF): the fiscal deficit of 2.5% of the GDP.
According to the vision of Batakis, this message should be enough, at least, to restore communication, and for debt holders to stop expressing the bad mood that they express almost daily at each market round. And, obviously, so that they put aside the aggressive definitions with which they received the minister. The same group described Batakis on the very Monday of his arrival at the Palacio de Hacienda as a “pyromaniac”, and, consequently, incapable of putting out a fire. Obviously, with this level of bilateral diplomacy, it is impossible to work, reflect on both sides, so any decision to improve contact would be well received. From both sides.
Criticism of Guzman
Source Bondholders, analyzed the current situation generated from Guzmán’s departure, as follows:
They describe the former minister Martín Guzmán as “an academic who lives outside of reality”, and with a “very arrogant” personality that he arrived “thinking about solving problems in his wrong way” and “taking an aggressive stance towards the markets”.
Guzmán’s main mistake would be that “after nine defaults and a horrible track record, he believed that Argentina had to pay interest rates like the United States,” which was “a tremendous mistake.”
The source considers that “now he realized that he had failed and abandoned ship”.
He is related and compared to the former Greek Finance Minister, Yanis Varoufakis, “who was about to declare the country in default for the second time with his absurd theories and then left.”
He believes that “nobody in the market ever expected anything from Guzmán. He was just there to keep the IMF bridge deal open.”
Regarding the future, the position is hard: “Currently, Argentina is paying almost zero for the debt and, despite this, it has no reserves and the local market is close to default. Why? Because the economic model is unsustainable.”
Batakis’ idea, accepted in principle by the bondholders, is to establish bridges of contact to change the general idea that debt holders have about Argentina. Obviously, it will be a hard task.
Source: Ambito
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