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First economic measures of the Milei Government will aim at rapid convergence to zero deficit

First economic measures of the Milei Government will aim at rapid convergence to zero deficit

“The anchor of the new economic program will be fiscal,” overtook Ambit a high source of equipment Luis Caputo, the designated head of the Treasury Palace by the elected president Javier Milei.

In this sense, he pointed out that “zero deficit will be reached quickly” in public accounts, “sooner than you imagine”.

The imbalance in public accounts will reach 5% of GDP by the end of the year, according to data from Econometrica. Of this percentage, 3 points correspond to the primary deficit and the rest to the interest burden.

Immediately, it was confirmed that, in the absence of a new budget for 2024, The incoming president will decide to extend the corresponding one to the current year, that is, you will have the possibility of liquidating expenses as the nominal items are not adjusted. According to the Latin Focus Consensus forecast, inflation next year would be 222%.

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Furthermore, this medium was able to confirm that Leonardo Madcur, current chief of staff Sergio Massawas chosen by Milei as new Argentine representative before the International Monetary Fund.

This is a key position, sources in the libertarian space pointed out to Ambit, at a time when the country needs external financing with negative net reserves of more than 10 billion dollars. In favor of understanding with the multilateral organization, the incoming economic team is preparing a severe cut in public spending and the prompt elimination of the fiscal imbalance, that is, the policy that the IMF most supports.

Madcur will also collaborate with the transition with the new government, as agreed in the secret meeting held last Sunday by Massa and Milei.

As in other cases of officials of the new government (Nicolas Possefuture Chief of Staff, Guillermo Francos in Interior), Madcur He is a former employee of Corporación América, where he met Milei. Precisely, from the ranks of the incoming Minister of Economy, Luis Caputoare responsible for clarifying that his appointment to the Fund is not an agreement with Massa.

Will replace Sergio Chodosan economist closely linked to the former Minister of Economy, Martin Guzman.

Source: Ambito

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