“There was a request from the Fund, which we all know,” he acknowledged. Jose Ignacio De Mendigurenbut, at the same time, he complained because “everyone was crying out for the devaluation and why the Government did not take charge and did not do it.”
In statements to Radio Cadena 3 of Rosario, the official pointed out that it was carried out after the elections because it was the conclusion of the negotiation process with the IMF.
“The devaluation decision was an issue that, once the elections were over and the IMF disbursements resolved and having taken care of the reserves, all that was done and 22% was adjusted“added the secretary.
De Mendiguren stressed that “it was expected after the elections because the IMF negotiation was pending and was resolved after the election.”
The official pointed out that it was a request that “everyone” knew about and stressed that the opposition “I had been demanding a sudden devaluation since August of last year.”
Dollar: the official justification
De Mendiguren justified the decision based on the drought impact that subtracted from the country a sum of US$22,000 million that translated into a lower level of activity in the entire agricultural sector.
“You have to be realistic and put the scenario on the table to analyze the measure,” claimed De Mendiguren, while adding: “Sergio Massa has tried to avoid it. We have tried to avoid it by trying by all means even in the face of a $22 billion drop in revenue.”
De Mendiguren affirmed: “Massa sought to avoid that path and with the IMF to negotiate everything but without affecting growth or the fall in unemployment. These are two things that have been achieved well.”
The secretary assured that the next government actions will be in line to sustain the level of activity because, according to what he said: “No We are willing in the negotiations to sacrifice that.” In addition, among the objectives was raised “to recover the purchasing power of wages.”
“Let’s be clear that there is no way out of this situation without economic growth. There are those who believe that first we must adjust and reduce and we know that, if we apply that, the level of activity falls, the level of employment, production and the collection and the balance is never reached. We have lived through that experience many times,” he added.
De Mendiguren stressed that Argentina “is on the eve of a very virtuous economic cycle.” Regarding the elections, he highlighted that Massa, being in charge of the economic leadership, it is virtually in a technical tie with the other forces disputing the Presidency.
Source: Ambito
