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economic activity, inflation, dollar, retirements and the role of Sturzenegger

economic activity, inflation, dollar, retirements and the role of Sturzenegger

The Minister of Economy expanded on the main economic variables. In addition, he referred to the entry into the cabinet of the former head of the BCRA.

Courtesy LN+

Six months after the inauguration of Javier Milei, the Minister of Economy, Luis Caputo, He gave a television interview tonight in which he referred to the evolution of the economic activity, the rise in dollar, the fall in inflation and the impact of the measures on the retirements. He also referred to the conditions for lifting the stocks and spoke of the role he will have Federico Sturzenegger in the cabinet.

The owner of the Treasury Palace did a review on the LN+ channel of the main economic variables and financial after weeks convulsed by the us currency at the local level, where the government also coexists with the discussion about the new forecast formula, the debate of the law Bases and the possible entry of the former head of the BCRA to the national Cabinet.

Luis Caputo on the economic recession

  • “I confirm that the worst is over; there is signs of recovery in May in several sectors: production and sale of cars, energy, iron and steel, not to mention the banking sector, with mortgage loans, income is also recovering strongly.
  • “Clearly it is felt in the pocket, the salary mass and the pensions as well.”
  • “In May the economy turned around.”
  • “We always said it was going to be hard, and it is… so to all those people, thank you for hanging in there.”
  • “But the level of hope that Argentina has turned around: the majority of people understood that this is the way, they no longer believe the story of populism, which was a pyramid scam: I print money and give it away… yes “If it were a reasonable model, it would be applied in other places in the world… this is factual, we cannot discuss this… no one disputes it: the militant or the fanatic discusses it.”

Caputo on May inflation

  • The Minister of Economy’s forecast for the Consumer Price Index (CPI) for May: “It would be below five points”

The Rcountry risk and the evolution of the dollar

  • “We are working to lower it. If the law (Bases) passed, we would be in 1000 points”.
  • “Normally, financial variables react according to the economic situation. But movements like that of the dollar, which went from being calm at 1100 to being at 1300, today obey politics.”
  • “It has nothing to do with the economy. We are now in fiscal, commercial and currency surplus.”

Exchange stocks

  • “We didn’t set an exact date because we don’t have a crystal ball.”
  • The four “conditions” for the Executive to remove the stocks: “One is fiscal balance. Two is to have the problem of inherited stock solved. Third is having solved the flow. And finally, there must be a reasonable relationship between reserves and remunerated liabilities. Today what is fulfilled is that of fiscal balance. We have solved the stock and flow by 75%. We are far away in the relationship of reserves with liabilities”
  • “The stocks don’t fit us. The most important thing is not to make batons. “It means leaving when we are sure that we are not going to cause a problem for people.”
  • “We have corrected that a lot. We are much better than in December but we are not ready yet”.

Luis Caputo on retirements

  • “In the last administration, pensions fell 24% in real terms; today the pensions of the people who actually contributed will be 3% higher in real terms in June, from the end of November to June.”
  • “Pensions are beating inflation; and in dollars they are earning double.”
  • “When you look at those who did not contribute, that is 3% down; those who contributed are 3% up.”
  • “They are wanting to disrupt the fiscal balance, because they know it is the heart of the plan; that is why they aim there.”

Caputo’s definitions of Milei and Pettovello

  • “The President has plenty of determination, courage and conviction; he lacks political support, which we all lack… more political support.”
  • “Sandra Pettovello has plenty of courage too, ovaries; and she needs to be allowed to work calmly.”
  • “I don’t have anything left over; I prefer to say that the economic team has a great vocation for service… and we lack a list of things: we lack time, we surely lack many things.”

Caputo on Federico Sturzenegger

  • “The relationship with (Federico) Sturzenegger is very good.”
  • “He’s not going to be on my team, because he has his own weight.”
  • “He specifically does a job that is very good, because we don’t have time to do it… it’s a matter of physical time: you don’t have time to look at all those things that in the medium term are spectacular reforms and that are very important.”
  • “When they put in the DNU all the companies that were going to be privatized, I said: it’s exaggerated… but Fede is right, because since they are all boxes, it doesn’t help to make them more efficient: you have to remove them so that there are no boxes and there are less and less incentives for people to come to politics to make money.”

Source: Ambito

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