Those that eliminated their Central Bank are countries frozen in poverty

Those that eliminated their Central Bank are countries frozen in poverty

International experiences, specialist analysis and impact measurement: references on the effects of a closure of the central bank have worsened recently, reaching Silvina Batakis. The current owner of National Bankrecognized this month as the first most profitable financial entity in the country, referred to the “very serious problem” that it causes for a State to be left “without monetary authority.”

AndorraMicronesia, Marshall Islands, Isles of Man, Kiribati, Nauru, Tuvalu, Palau and Panama are some of the nations that eliminated their central bank. In reference to them, the official said that “there are only two or three small countries in the world that have been frozen in the structural poverty and they were never able to get out of there.”

In contrast, he assured that “developed countries arrived there with a Present state, industrial policy, monetary authority and defending his currency” and referred to the discussions that are generated in those countries about a elimination of central bank: “The measure has been rejected by many think tanks in Englandin Europe continental and in USA. “There are specialized newspapers criticizing this measure.”

“All these measures proposed by the candidate Milei the only thing they would do is deepening poverty in the most vulnerable areas and the absolute impoverishment of the middle class; because also what should be done, in the dollarizationis confiscate savings because if not, there are not many chances to do what this candidate is proposing,” summarized Batakis, interviewed on Radio Provincia.

The president of National Bank stated that there is “a election scam” from the libertarian candidate because “when we make an electoral proposal we have the responsibility to say what the impacts will be on the people.” “However, these candidates are not talking about how they are going to improve the industry in Argentina, generate jobs or improve the salary to the people because the measures they propose generate deindustrialization and loss of wages,” he added.

Finally, he referred to the inflation: “Our economy is bimonetary, and producers and merchants look at the exchange rate to be able to set prices. And we Argentines are rational, we want to defend ourselves from inflation. And one of the references is the exchange rate.” To confront it, he highlighted the Large Exporters Program proposed by Sergio Massawhich would make it possible to “increase reserves to stabilize the exchange rate.”

Banco Nación will make an offer for Vicentin

The president of National Bank, Silvina Batakisstated this week that the entity is working on a proposal to acquire shares of the cereal agroexporter Vicentincreditor of a debt of almost US$1.5 billion. Batakis clarified that the offer could be associated with some other State entity, and that it wouldn’t be 100% of actions.

Last Friday, the civil and commercial judge of the second nomination of the Santa Fe city of Reconquista, Fabián Lorenzini, signed the resolution that rejects the approval of the agreement presented by Vicentin to exit the preventive bankruptcy.

As part of the ruling, Lorenzini ordered the opening of the concurrence period, also known as ‘cramdown’ or rescuewhich came into effect from yesterday until the end of this month and which opens the possibility of the presentation of offers from those interested in managing the company, including the bankrupt company itself.

Vicentinthe main agro-exporting company with Argentine capital, went into default in December 2019 and the following March requested its preventive bankruptcy, with verified credits for almost US$1.5 billion.

Source: Ambito

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