(Special envoy to Mendoza) He Secretary of Finance, Pablo Quirno, He was in charge of “livening up” with a brief speech the luncheon this Friday, September 6th at the 45th Annual Convention of the Argentine Institute of Financial Executives (IAEF) and assured that the current government strongly increased the value of financial assets in the local capital market. He estimated that this increase based on the growth of the Merval index and dollar bonds. He also anticipated that The fiscal surplus will guarantee the funds to meet the 2026 commitments.
“It’s something that is generally overlooked, but Argentina generated value for the private sector for 25 points of GDP“We have increased our financial assets by US$50 billion in these eight months, of which US$20 billion correspond to the S&P Merval and US$28 billion to the valuation of hard dollar bonds,” he said, surprising the 250 diners who were listening attentively.
The government says it has the funds it needs for 2025
On the other hand, Quirno assured that the Government is in a position to meet the commitments it will have to face in 2025“We have a primary surplus of between $1 trillion and $1.5 trillion per month, which is equivalent to $6 billion between now and the end of the year. That guarantees us the funds to meet the commitments we have ahead of us in 2025,” he said.
He pointed out, at another point in his speech, that Argentina has always dedicated itself to attacking the consequences of the problems it hadnot the origin itself: “the fiscal deficit, to which we were addicted for many years.” He explained that Argentine history means that those who carry out economic policies tend to have zero credibility.
The need to generate credibility is key for the economic team
And, mindful of that, the current economic team worked to generate confidence. “To do thiswe seek to give quick signals “and we implemented a program that did not require Congress. Thus, in the first month of management we achieved financial equilibrium, which is also something that had never happened in Argentina without entering into default,” said Quirno.
In this regard, he assured that It is unprecedented for a government to lower taxes that it raised“That is part of the path to credibility. The commitment is to keep our word with actions because each of our actions generates doubts on the other side. We lowered the PAIS tax and people already think that the numbers are not going to add up,” he explained.
And he said that, Within the framework of this construction of credibility, the process of cleaning up the balance sheet of the BCRA began.“We are at a point where the private sector’s conviction in the development of the program and its viability going forward will be key. In this process we took action very quickly and reaching a fiscal surplus means that we can take charge of the debt that the Treasury has generated for the BCRA,” he said.
The clean-up of the BCRA, a milestone highlighted by Quirno
He referred to the fact that, during the previous administration, All the debt in pesos was indexed to one day, but the current Government was stretching out the termsclosing the money supply taps and resolving the puts. “That helped us to fight hard against inflation,” he said.
And he highlighted, in this regard, that, to date, they have obtained the following results: “We cleaned up the BCRA, eliminated the fiscal deficit and the Treasury absorbed the BCRA’s debt“. Thus, he assured that all of this was the path they chose “to generate credibility.”
Regarding the role of the current government in relation to economic activity, Quirno pointed out that “We are here to remove the elephant’s foot that the State has placed on private activity for decades.“. And he emphasized that they believe that the State has to be “the field manager that sets the field for private activity to play on.”
In this regard, he stated that They are “lowering the worst tax of all, the inflationary one” and that, in that train, they are seeing that economic activity is rebounding and reached a low point in May or June. He assured that the private sector is getting active and that this is very important for everyone. “Trust because it will turn out well,” Quino emphasized at the end of his speech.
Source: Ambito
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