Pesce maintained that the agreement reached with the IMF has characteristics similar to those that the organization concluded with Iceland in 2008 and gave as an example of this that the Standby agreement “which today we are substituting for the Extended Facilities, does not rest exclusively on an adjustment of prices, in a strong devaluation or in a strong increase in the interest rate, but rather that regulatory mechanisms were used to prevent the balance sheets from generating a macroeconomic problem”.
Regarding the economy, the head of the Central Bank maintained that “we are at a growth floor for this year of the order of 4%” and even hinted that “it is very possible that Argentina will once again surprise with its growth rate this year”.
“Argentina’s growth rate is always surprising, as it was surprising last year, when in September we were expecting growth of the order of 7% and it ended up being 10%,” the official slipped.
Pesce insisted on the “importance of increasing exports. Last year we exported practically 78 billion dollars.”
“We came with export levels of around 64 billion dollars. It is very difficult to be able to sustain that dynamic for years, but if Argentina exceeds 80 billion in 2022, I think a very important,” he stressed.
Pesce also emphasized that “we are working for an increase in reserves, it is a point of discussion that we have with the International Monetary Fund. It not only depends on our surplus in the foreign exchange market, but also on this contribution that the Monetary Fund is going to make.”
“We have an interest maturity month ahead of $1.5 billion per year, but we’re going to receive this disbursement of around $4.3 billion. So there we have an increase in reserves and we’re also expecting an increase of reserves for the result of the negotiations with the multilateral credit organizations with which we are working bilaterally and also in cooperation with the International Monetary Fund, so that this year we have a positive net result,” he said.
After which he summarized that “we are expecting an increase in reserves for the end of the closing, when we are talking about the order of 5 billion dollars, but this is something we are working on and fine-tuning numbers because we still have discussions with the Fund regarding this figure”.
On the political level, Pesce expressed his interest in the Senate this year “being able to define an agenda where it can deal with my statement”, because he is in charge of the entity “in committee” because its ratification still remains, and that “hopefully let’s achieve these objectives of economic development of our country, of job creation and growth and that will be a greater guarantee to be able to continue in office”.
By way of closing, the head of the Central Bank said that achieving these objectives would also “We have the chance that President Alberto Fernández will be re-elected next year”.
Source: Ambito
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