The crisis was analyzed in a virtual meeting organized by Adcap Financial Groupin which the chief economist of the Latin American Economic Research Foundation (FIEL), Daniel Artanaand the former Secretary of Finance and director of the consulting firm Quantum, Daniel Marx, coordinated by Javier Timerman, partner of Adcap.
Daniel Marx referred to the effects of the resignation of Martín Guzmán as head of Economy by pointing out that “the policies did not change too much” with the arrival of Silvina Batakis. “Argentina continues to have the problem of creating confidence to grow and attract investment,” she explained.
“The reduction in money demand is a demonstration of the lack of confidence. In the last 12 months, the monetary base increased by 47%, while inflation was around 70%”, he added.
The director of Quantum also ruled out a scenario of extreme measures. “Nominal deposits are relatively stable, even in real terms”, he pointed out and explained that “The Central Bank’s debt is at a fixed rate, so the Government would not need to go to a Bonex Plan.” On the other hand, he said that “technically, Argentine debt in foreign currency has almost no maturities until 2025 and pays very low coupons, so thinking about a restructuring does not make sense”. And he added that “with domestic debt it is almost the same”.
Source: Ambito
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