The market is also awaiting the presentation to Congress of a “multi-year” plan that the government promised after being defeated in the recent mid-term elections.
“Considering realistic deadlines, the approval of the Argentine Congress would take a few more weeks and the ratification by the IMF Board could occur in mid-February.. The presentation of the Pluriannual Plan, scheduled for next week, was involved in certain uncertainty after the announcement of the officials’ trip to Washington, “estimated Delphos Investment.
“It is very important that Argentina reaches an agreement with the Fund in the coming months and that it be able to do what is called debt rollover and avoid this focus of crisis. Not much is expected from the program with the Fund in terms of structural changes, but it could contribute to closing the fiscal deficit and that would also contribute to solving the problem that it is facing, “the former Vice Minister of Economy, Sebastián Galiani, said in radio statements.
“We believe that the structural solution would not depend on the IMF or another creditor, or on the discovery of new deposits or similar resources. Important political changes that involve a large part of the population would be needed“, dijo VatNet Research.
“The government should focus on the issue of subsidies. That is where I think there can be significant savings and that investors really see that there is a change in attitude regarding the government’s ability to seek financing, not only through issuance. , not only through the capital market, but also by reducing his own spending, “said financial analyst Javier Timerman in radio statements.
“The Argentine financial system today is solid, with good levels of capitalization, together with a relatively low level of delinquency and liquidity in dollars that is at historical highs, above 80%”, Said Alejandro Butti, executive director of Banco Santander Argentina.
“Towards the end of 2021 we foresee that the commercial exchange with Brazil will remain at high levels. However, with a view to 2022 a series of questions have arisen that generate uncertainty about Bilateral Trade. Both Brazil and Argentina will find themselves in 2022 in a context international is not so auspicious, “said the consulting firm ABECEB.
“Inflation in November was 2.9% per month and registered a year-on-year growth of 46.7%. “” Core inflation advanced at a monthly rate of 3.3%, marking an annual increase of 48.5%. Accumulated headline inflation was 41.6%, “said the estimate of retail prices prepared by Orlando Ferreres & Asociados.
“An abrupt acceleration in the inflation rate is the ‘Sword of Damocles’ that looms over the recovery of the level of activity, given the contractionary effect it would have on aggregate demand. In turn, this threat is incubated in the upward trajectory of the public debt “. Mediterranean foundation said.
The Fiscal Balance Index (IEF) of the Center for the Study of the New Economy (CENE) of the University of Belgrano registered a 4.9% decline in October compared to the level registered the previous month, and 8.2% in relation to the same month last year.
“The fiscal policy picture for 2022 looks challenging: the improvement in 2021 was significant, but underpinned by effects that will not be in 2022. This leaves an inertial deficit greater than that registered this year, but the most worrying thing is that although it looks manageable , there are limited spaces to act “, estimated the consulting firm Ecolatina.
Source From: Ambito
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