arguments
The Minister of Economy and the President finished arming all the necessary artillery for the defense of the economic, monetary and financial predictions that will be discussed in the venue; in the face of the real and concrete danger that from the very ranks of the official coalition the attacks arrive.
In this sense, yesterday’s task at the Government House was to show an unequivocally stony position in defense of the budget assembly based on the Extended Facilities, without taking into account the public and private demands of the closest legislators. to Kirchnerism of reworking the letter of the project, without taking into account the three fundamental goals negotiated with the IMF. That is, the primary fiscal deficit of 1.9% of GDP, the monetary issue below 0.6% and a level of reserves above US$5,000 million. Precisely the first is the one that sectors of Kirchnerism most question. And the one that the Executive most promised to sustain before the technicians of the organization that leads Kristalina Georgiev.
tax goal
The men and women of the economic team know that in recent weeks they have been in direct contact with the technicians of the financial institution to close the approval of the numbers and percentages for the second quarter of the year, that even mentioning the possibility of a renegotiation of that fiscal goal would provoke the dismantling of the Extended Facilities. And that for this reason, knowing also that the management of the Argentine economy is under the magnifying glass of the IMF, The Executive directly confirms publicly that there is no possibility of discussing the goals. And that, obviously, the Extended Facilities is more valid than ever.
More when, it is known, the IMF endorsed the flexibility of including in the text the requirement of the opposition of the “trigger clause” on the evolution of inflation in the next financial year, so that in the event (quite likely) that the increase in prices exceeds the 60% predicted by the Palace of Finance, the variable is updated, and it would receive the approval of Washington. Provided that, later, the rest of the indicators that depend on that percentage (especially collection), are also indexed at the same level. Outside of this clause, the technical team that regularly monitors the numbers and percentages of the Extended Facilities could not have major obstacles for this kind of “trigger clause” to be included in the 2023 Budget.
For the IMF, in addition, the possibility of endorsing an alternative to bring closer economic and political positions between the Government (more specifically the Ministry of Economy) and the opposition so that there is a Budget during the next exercise is enthusiastic. More if within that law all the guidelines that appear in the Extended Facilities are included. Especially the primary cash-based deficit of 1.9% of GDP committed to the international financial organization for 2023.
Source: Ambito
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