President Javier Milei’s trip to the summit of the World Economic Forum in Davos, and the treatment of the omnibus law for economic reforms in the national Congress, concentrate the attention of the new financial week in Argentina.
Analysts and operators give their opinion on the situation of the third largest economy in Latin America, on a Monday with widespread liquidity cuts due to a holiday in the United States:
“The fact that the Fund (IMF) supported the policies of the new administration marks a clear change in tone and suggests that the relationship with Buenos Aires will be more cooperative than under the previous administration,” he stated. Capital Economics.
“That said, it appears that the Fund is still avoiding addressing some of Argentina’s most deeply rooted problems, including the need to move to a fully flexible exchange rate and restructure sovereign debt,” he added.
“The goals established (with the IMF) for this year include a primary surplus of 2% of GDP – consistent with a zero financial deficit – and an accumulation of reserves of 10 billion dollars (…) This would imply ending the year with net reserves at zero,” said the IEB Group.
“The exemptions and recent economic measures allowed the Government not only to unlock a disbursement of 3.3 billion dollars (to the IMF), but also to advance 1.4 billion dollars (…) originally planned for the April-September period. In this way “IMF maturities will be met during the first four months,” the firm said. Mariva in a report.
“The operators continue to pay attention to the parliamentary tug-of-war over the omnibus law, and the DNU, since achieving a favorable result would improve the expectations of the agents. This is very important in this stage of stagflation since it could mitigate the harsh effects, as well how to open better perspectives for the future,” said the economist Gustavo Ber.
“Just when the (exchange rate) gap was beginning to awaken, the ‘Bopreal’ (bonus for importers) had its first success (…) This will allow pesos to be absorbed just when due to seasonal factors the demand for money usually falls and exporters settle less, taking pressure off this market,” he said. Roberto Geretto, of Fundcorp.
“The expected growth for 2024 and 2025 continues to decline. The fall in product would bring about a slight increase in unemployment and it is expected that this level of unemployment will be maintained in 2025,” he said. Adcap Financial Group.
“The worst news was that the period of embargoes against Argentine assets abroad began due to the trial on the partial nationalization of YPF (…) Luckily, the ‘Foreign Sovereign Immunities Act’ limits the possibilities of embargoes against governments foreigners to resources used in their commercial activity in the United States,” he remarked Roberto Drimer, from VaTnet Financial Research.
Source: Ambito
