“The first challenging constraint that we have for the next 12 months is to imagine How do we find a point at which we are attractive to all that is the Argentine agro-export sector?, because that weighs us in reserves; because Argentina needs to accumulate reservations, but also how we use to sustain the level of activity”he pointed.
The head of the economic portfolio raised the need to understand that “it is important that each Argentine SME, that each Argentine company that produces goods has the dollars to increase the supply because, ultimately, part of the inflationary problem has to do with two and a half years without access to credit, financing us with issuance, with a 6-point deficit only leveraged on assistance from the Treasury. And well, all that is like at home: if you finance yourself with the card and you have no income and you do not generate income with work, there is a moment when the item of interest on the card becomes a mountain that is difficult to absorb and It is time to stop the ball, to put order, to work seriously”he explained.
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Therefore, he added, “take measures that out there are not the most pleasant: when one gets rigid when it comes to controlling spendingwhen one puts methodical in meeting objectives that Argentina has signed on an international levelwhen one puts obsessive with public investment having a real impact and it’s not just the distribution of weights to jurisdictionsIt has to do with using the resources we have in the best possible way.”
In relation to multiple exchange ratesindicated that “Argentina has to move towards the simplification of this processtrying to balance the input and output stacks of what they are producer goods, consumer goodsand trying to balance the stacks of what they are output of luxury or products that already have prices in some way dollarized.” According to Massa, “the goal of halving inflation that we received, which is a bit of the initial message that we gave, I do not change. Neither at the time we planned did we think we were going to have a drought that changes everything.”
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In another order, he affirmed that “The debt in pesos is absolutely sustainable and it will also be clear and demonstrated in the coming dayswhen we finish closing the second quarter, which is the only one this year that has, let’s say, a strong component not within the State, but rather a strong component of the participation of banks, mutual funds and insurance companies”. “Not only is it not unpayable, but after the second quarter, the next government is going to have a much better profile and curve for 24 and 25 than this government had when it started in terms of product”, he remarked.
When asked if the agreement with the Fund is enforceable, he stated that “Yes, of course, yes, yes”, while clarifying that “the proposal has to be how we multiply the generation of dollars from the four advantages that Argentina has for the coming years. And that has to be the fundamental discussion of Argentina.” “The challenge of stabilizing by lowering inflation without causing harm is a challenge that all of us who assume responsibility for this crisis set ourselves. and no bad result in a game is going to get me out of the fight in the championship to lower inflation,” he concluded.
Source: Ambito
