“We want to know when it will be agreed with the IMF to know what the government’s economic program is”, they agreed to point to Ambit various managers. In this sense, they rescued the concepts of the President by stating that “our decision to find a quick agreement with the IMF is absolute. But a quick agreement cannot lead to a bad agreement. We are going to continue discussing until we are sure that we will have the necessary resources to put the Argentine economy on its feet and guarantee work in our town. Only from there, we will begin to face the obligations that we have inherited ”.
It should be remembered that during the lunch held last Tuesday by President Alberto Fernández with the owners of some of the main companies in the country, a good part of the almost three hours that the meeting lasted was dedicated to addressing the understanding with the International Monetary Fund .
Javier Madanes Quintanilla, from Aluar, who participated in this meeting, commented that several of those attending the lunch were very interested in learning about the subject of negotiations with the IMF.
Alberto Fernández himself via twitter pointed out that “we had an excellent meeting with Argentine businessmen in which, among other issues, I reported on how the negotiation with the IMF for the debt we inherited from the previous government is progressing.”
According to Quintanilla, the head of state explained to them the status of the possible agreement. “The president explained to us what his strategy is for closing an agreement that he considers essential and clarified that the entire government coalition also considers it that way. He fixed times, specifically he mentioned the first quarter of next year ”.
The president also commented to them why today is not the time to close the agreement: “fundamentally due to the discussion of the surcharges that Argentina would be paying if this is not renegotiated,” added the businessman. In this sense, this Wednesday the head of the IMF herself confirmed to Ámbito that the issue of surcharges has not yet been resolved but that “it will continue” to be discussed.
Investors
In this framework, there was also interest on the part of businessmen to learn about the meeting that took place on Friday in New York, the Chief of Staff, Juan Manzur, and the Minister of Economy, Martín Guzmán with a group of investors. The world’s largest fund manager, BlackRock, participated, along with executives from JP Morgan, Morgan Stanley, Goldman Sachs, Fint Tech and Gramercy, among others.
From what was discussed in that meeting, they rescue that Guzmán affirmed that “Relying on debt and monetary issuance in a systematic way generates problems in the economy” and clarified that “for this reason we consider it important that the deficit gradually falls.”
The data that surprised them was that the former Vice Minister of Economy participated in this meeting with the investors during the management of Axel Kicillof, Emanuel Alvarez Agis. More than one businessman wondered “Will he be the next Minister of Economy?” from the presumption that after November 14 there will be more cabinet changes. It was even said that it was Manzur who invited the former vice minister to New York.
“Guzmán invited me”, responded Álvarez Agis to Ambit while adding “it was a pleasure to meet again with Juan” and recalled that they were “fellow cabinet members.”
Referring to the meeting, the economist pointed out that “beyond the usual questions, what most surprised (the audience) was Manzur’s willingness to come to New York on the day just to talk to them, to confirm that the political decision of all the Government is to make an agreement with the Fund. The concrete gesture surprised a lot for the better ”.
Precisely one of the issues that most worries investors, according to what they told Ámbito from New York, is what not a few consider as “the lack of unity within the Argentine government when defining the characteristics of the agreement with the IMF.”
There was also speculation by businessmen about the future of the Central Bank’s leadership since Álvarez Agis, in his latest report, slides a critical evening of the actions of the monetary authority. “The way to face the exchange imbalance continues to be through the restriction of demand. The result is a more segmented parallel market in which new gaps and arbitrage opportunities appear, on the one hand, and an increasingly smaller official market in which there are no incentives to offer. As long as the approach is not changed and the offer is promoted, there will not be a fundamental solution ”, the work indicates.
The rivalry between the finance ministers and the heads of the Central Bank is almost a classic in Argentina and the different views on monetary policy between Miguel Ángel Pesce and Guzmán are no exception.
And it is said that from La Cámpora both officials are not seen with good eyes. “Inflation is not going down (they question Guzmán), and neither does the dollar despite the stocks of the dollar (criticizing Pesce)”, while remembering that they are in an electoral year.
In short, businessmen and investors have doubts as to what will happen after November 14 with the course and the official coalition. That is why they cling to the possible agreement with the IMF since it would make a program explicit “but for next year there is a lot to do” they lamented.
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