Sources with knowledge of the conversations said that the main interest of all their interlocutors was to know “who Batakis is; if he is a Kirchnerist, if he is a prosecutor.” After listening to her, some defined her as a “technocrat”. One of the main doubts of both the Fund and the Treasury and investors was whether he will be able to meet the primary deficit target of 2.5% of GDP agreed with the IMF.
The official assured them that she will move forward in that direction and told them that she will step hard on spending to direct the accounts. She said that the measures that she has already announced (such as the freezing of the State personnel plant and the single fund) will have an impact and that, in addition, there will be a cut in the monthly items for the different ministries. In this regard, in the Government they say that Batakis has already raised with his peers the need for “greater austerity in spending”: reduce entourages, review superfluous expenses, budgets that are not executed. At the same time, they assure that pensions, plans and other key expenses will not be touched to alleviate the difficult social situation. The minister also raised before the bondholders that there will be more rises in the interest rate.
Asked about the support of the ruling coalition as a whole to implement these policies, Batakis said that his plan has the approval of the three leaders of the Front of All: Alberto Fernández, Cristina Fernández de Kirchner and Sergio Massa.
With the Fund in particular, Batakis affirmed in a meeting with journalists organized by the EFE agency that there was no talk of changes in the goals of the program, but “how we are going to meet those goals.” He also discussed the exchange rate shock of recent weeks, with strong devaluation pressures, and the measures he took and are being analyzed by the economic team to deal with the situation.
Result
As a concrete result, Batakis brought about the approval by the World Bank of a new loan for Argentina for US$200 million, which will bring some relief to the reserves. However, during the trip itself, the president of the Inter-American Development Bank (IDB), Mauricio Claver-Carone, a hawk in Donald Trump’s army, admitted in a note published in The Wall Street Journal that disbursements already approved have been blocked. by that organization for some US$800 million: US$500 million that should have entered in the first semester and another US$300 million that should have entered by September. There was an official request to the US Treasury for the government of Joe Biden to intercede in this regard.
Upon her return from Washington, the minister will again focus on local tensions, hoping for a greater liquidation of agrodollars. She today she, moreover, will face a key tender to bring calm to the market in which she will have to renew more than $300,000 million.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
