In addition, the opposition communiqué highlights: “Despite the denial of the Government, this has put the country in a delicate scenario of financial fragility that increases the risk of chaotic exit. In short, a situation that, far from solving the problems, irresponsibly tries to shift its impact to the day after the election“.
Before the publication of this statement, Rubinstein responded through his Twitter account that the government’s debt in pesos is sustainable since its participation in GDP was reduced compared to the ratio present during the presidency of Mauricio Macri. He also highlighted the “de-dollarization” of the Argentine debt: “That government issued very short-term Letes in Dollars with rates close to 7.5% per year, accumulating towards the end of 2019 an amount equivalent to 8% of the GDP that they themselves had to “reprofile”; mainly harming Argentine savers”, he said in reference to the announcement of the then Minister of Finance, Hernán Lacunza, to refinance the maturities of public bills.
“This Government is financed in Pesos,” said Rubinstein and added: “The portion called the Linked Dollar, which is adjusted by the official exchange rate, pays interest rates of 0% (zero percent). The debt in pesos is manageable and sustainable. Represents 24% of GDP (including long-term bonds such as Discount and Quasipar) and half is in the hands of the National State itself. It is compared with debts at 124% of GDP such as Colombia and Brazil with 65.6% of GDP”.
This morning, Rubinstein insisted and summoned the economic referents of Together for Change to make a series of agreements. Among those questioned were the former Minister of Finance, Hernan Lacunzathe national deputies Ricardo Lopez Murphy and Luciano Laspina and the dean of the government school of the Universidad di Tella, Eduardo Levy Yeyati. All of them were designated as the creators of the economic plan that Together for Change will present for the elections.
Among the agreements that Rubinstein proposes are establishing as a state policy the approval of budgets without primary fiscal deficit to avoid indebtedness in both dollars and pesos. It also summons them to say that “in no way do they plan to reshape” the debt in pesos and asked them to help dilute current and future interest rates now.
In the same sense, the former Vice Minister of Economy, Emmanuel Alvarez Agis, who first released a report through his consultancy, PxQ, after the opposition statement, in which he pointed out: “If the opposition perceives that the level of adjustment necessary for the treasury to have a global surplus as unfeasible, it has only 2 options. The The first implies accepting that 2024 will have certain continuities in terms of economic policy. If this option does not seem politically viable, the second is to bet that an economic explosion during the current government will make the adjustment.”
This morning, Alvarez Agis, crossed the opposition economic team: “The debt in pesos, from the technical point of view, does not represent any problem for Argentina. What Cambiemos is looking for is for the government to have a financial crisis where the debt becomes ointment, the dollar goes to hell and obtain an electoral and economic benefit”, said the former official in dialogue with Radio con Vos and added: “The program that Cambiemos wants to apply does not want to have to star when they take office, they want this adjustment to be made by the market to the government“.
He also recalled the run that took place prior to the change of government in 2019 and the reaction of the current president Alberto Fernández. “They called me Hernán Lacunza and Guido Sandleris to ask me to please put a ceiling on the dollar in the middle of the bullfight that Macri unleashed with his post STEP statement. Alberto, having the option of pressing the button and having everything blown up or putting a ceiling on the dollar, put a ceiling on the dollar.”
Lastly, he defended the sustainability of the debt in pesos and questioned whether mistrust is generated by the current government: “The IMF says that the debt in pesos is sustainable. It is a lie that people do not lend to the government, they do not want to lend to Cambiemos. The holders of debt in pesos want to avoid the next government having to pay them if it were Cambiemos.”
What they responded from Together for Change
The first to respond was the deputy Lopez Murphy who said that he accepted the invitation but that he would debate with the Minister of Economy, Sergio Massaand that he was willing to help the Government: “I am willing to go to a public debate on how to face this problem to consolidate. I am willing to pay the necessary political prices by helping the government to correct this disaster.”
Levy Yeyati He also agreed with the vice minister but in another aspect, to avoid borrowing in any currency. “I agree: in the coming months, the government should focus on finding the primary fiscal balance, avoiding financing imbalances with new short-term liabilities in foreign currency (dual bonds, repos, futures) that compromise fiscal sustainability,” said the economist.
lacunzawho was accused together with the national deputy Luciano Laspina of having promoted the bullfight against bills in pesos when former minister Martín Guzmán remained in office, only commented on his Twitter account: “That it does not explode now, nor next year, nor ever. Because the poor suffer. So, no festival of bonds in indexed pesos, dual (free exchange insurance), tax payment bonds 2024, bonds to Anses and BCRA (to retirees and pesified), usurious repos, imports to pay since December.”
Source: Ambito
