The former director of the International Monetary Fund (IMF), Claudio Loser, indicated this Monday that between this month and next there will be a new disbursement of credits from the organization for Argentina. According to him, they will aim to improve reserve levels. “There you can start talk seriously about getting out of the trap“he stated.
“I remain convinced that between this month and next we will have new fundsnot as much as the Government I would like to get out of stocks, but with the country risk reduced and some people looking at this small difference between the official exchange rate and the blue, I believe that The Fund is going to put in money to improve reserves and we can start talking seriously about getting out of the stocks.“, he stated in statements to Radio AM 990 Splendid.
He analyzed that “now they are going to sit down to negotiate and I think there will be a prompt visit from the IMF”, while stating: “I am sure that there will be a new program and that trump can help.” He clarified that “if the reserve goals were not met, I believe that in any case the money left disburse is going to disburse and I believe that there is going to be a new program and that trump can help.”
Loser said anyway”is not going to give a lot of money because the other partnerswho are the ones who really have to put in money, They are going to say that Argentina already owes us a lot“.
The former director of the IMF, Claudio Loser, raised the need for an “exchange adjustment”
Asked about the risk of taking on foreign debt, he said that “this has happened since I can remember, in this case the difference is that there is no fiscal deficit.” And he added: “I think that because fiscal consolidation, monetary consolidation and despite the fact that reserves grew less than expected, this gives strong support to Argentina. “Not as much capital has entered as in the time of (Mauricio) Macri or in the 90s, so in that sense I think the risk is lower,” he considered.
In that sense, he said that it would be risky “if Milei suddenly made important mistakes in the economic part or there were electoral problems,” and he exemplified that “One mistake you should not make is to start overspending and not move quickly to eliminate the stocks.” “I’m not saying that you have to eliminate the traps immediately, but if they keep the controls for too long people would start to get scared,” he warned.
Regarding whether he considers a devaluation necessary, he said: “I am of the idea that there should be an exchange rate adjustmentbut there are other economists of perhaps a better level than me who say that we have to let this stand, given that there have not been major imbalances. “A large devaluation would generate too many problems, but a small adjustment of 5-10% would be reasonable,” he added.
Loser, former director of the IMF, spoke about the exchange rate and protection of the industry
The economist observed that “the Argentina at this moment is a country that has become expensive“and that” so much Chili as Brazil are winning due to this short-term strengthening in Argentina.” In this context, he maintained that “they have to there will be an impressive reorganization in the industrial sectormuch more integrated with the rest of the world” and targeted against state protection to the industry.
“Protection of the national industry is a problem, I think that in the long run there would have to be a floating exchange rate that would allow the dollar to rise while maintaining a strong fiscal policy, because otherwise we could end up with a serious problem,” He maintained and added that “There are industries that take advantage of their condition of monopolistic protection and it is not that they have so many employees that they can be fired and the rest of the Argentines are reducing their real income to protect these companies that are monopolistic.”
Finally, he said that “the whole problem lies in the tax burden”. “Taxes on certain inputs and the inability to acquire foreign inputs, tax and non-tax restrictions, make many industries in Argentina inefficient,” he concluded.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
