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Javier Milei has nowhere to adjust, that’s why public works took the worst part

Javier Milei has nowhere to adjust, that’s why public works took the worst part
Javier Milei has nowhere to adjust, that’s why public works took the worst part

The former vice minister of Economy questioned the decision that the private sector self-finance infrastructure works. He did it at the CAMARCO annual convention.

Emmanuel Álvarez Agis, former vice minister of Economy, stated that public works bore the brunt of President Javier Milei’s adjustment. According to the economist, this situation was reached because The Government “has nowhere else to adjust”.

In this context, the Executive Branch needs to look for fresh funds. Despite the fact that the Minister of Economy, Luis Caputo, assures that he will try to reach a new agreement with disbursements from the International Monetary Fund (IMF), “Easy money is not available for Argentina today, as it was in Mauricio Macri’s Argentina”stated the economist at the annual convention of the Argentine Chamber of Construction (CAMARCO).

Is it possible for private companies to finance their infrastructure in Argentina?

The libertarian administration asks the private sector to self-finance the infrastructure works necessary for the sector. But, it is required in an Argentina that has low and short-term financing, which creates a problem since infrastructure tickets are high compared to the financing that the sector could obtain, Agis described in his participation.

What is the reason for the lack of financing? Basically to negative macroeconomic variables, especially inflation. With a variation of 4.2% monthly, a high loan cannot be required, since at the time of finalizing the payment of that credit the money does not have the same value due to liquefaction via inflation, he added.

“Milei cannot ask the banking system to finance a huge ticket with an inflation of 2% being optimistic”concluded Álvarez Agis.

Source: Ambito

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