Pablo Luna, Finance Manager of Banco Credicoop, He referred to the progress of the economy and the importance of credit during the first panel Scope Debate about Finance & Investments in the Milei era, which was moderated by the director of Ámbito, Julian Guarino.
When focusing on the situation in the country, Luna did not hesitate to point out that “we are objectively in a better situation in terms of volatility and variability” and emphasized: “The experience is not talking about another society, but about ourselves a few years ago. Although this does not guarantee that there will be no setbacks ahead.”
“It was a complex year, we started with monthly price volatility, rising to 20% in January and today it is at levels of 4 or 3.5%. It seems at first reading that we are better. There are conditions, some demand appears for our listed assets, bonds rise and that is also positive. In some things we are in a situation in which we seem to be getting back on track,” observed about the direction of the economy.
The tensions ahead
The Credicoop representative admitted that “we have to see what tensions continue to be generated and what is maintained in terms of the balance achieved to project it ahead” and noted: “We began to talk again with concern about the pace of evolution of the exchange rate versus internal prices and tensions appeared.”
Looking to the future, he said: “The issue of restrictions that would enable the entry of capital, especially direct investment and the real economy, which is where we have more eyes on the bank. All of this still does not appear so clear and forceful.”
“There are sectors that are achieving better levels of activity than months ago, but it is still very selective and focused. We have to see if this is a trend and reaches others who are linked to the internal market. “These are challenges that are not resolved,” he warned.
The contribution of credits to leverage the economy
Regarding the importance of credit, Luna considered that it is a “fundamental aspect of economic activity anywhere” and regretted that there is “an underdevelopment of the economy that is inappropriate at this stage.”
“We have a goal that, of the total of what we produce, an equivalent of 10% is in aggregate terms leveraged in loans. It is low, but today it would be a glory for us,” he acknowledged, revealing that “In April we hit a bottom in the financial system, financing the product in terms of 4.5% and today, after 5 months of sustained growth, we are at 5.9% in loans to both people and companies.”
Along these lines, he highlighted “the virtuous process” that involves “the passage of savings placed in the State to the real economy” and pointed out that “there is a lot to go through,” and then highlighted: “Signs appear such as laundering, the externalization of assets.”
“Argentina has a lot of wealth, there are companies that are highly valued by the market even in contexts where the operating rules are not very clear. “I think that credit leveraging the economy has something to contribute, there may be a vein,” defined.
Savings and banks
Regarding the instruments that clients choose, Luna highlighted that there is “a joint response or growth in expanding the offer and the vehicle where the savings are made” and stated that “The traditional product is fixed-term deposits in banks for savings.”
However, he said that “It is a vision that is being surpassed and complemented.” with products such as the growth of the activity of common funds, with investors who choose one type of fund or another, since they can save in funds or shares, bonds of a certain type, with CER, which adjust in the short or long term” .
“The developments are very dynamic in the activity of mutual funds and the banks are responding. These are steps that are being taken in the financial culture of incorporating tools,” highlighted the Credicoop representative.
And he clarified: “The investor decides, based on the horizon in which that investment can remain, which fund or asset class will be chosen. There is permanent arbitration and a decision that is good to be reviewed all the time and knowing what the tools are.”
The role of Banco Credicoop
Luna highlighted that Credicoop is “a cooperative bank, with 276 branches and presence throughout the country”, Therefore, he highlighted that it is “a very viable option for those who need a bank that plans to provide support to productive sectors or need to resolve their financial operations.”
“We are willing and there are many lines of credit in force, that we go every day feeding its growth. Some have to do with technological renewal, energy efficiency, working capital. We are a universal bank, with a very interesting proposal,” he said.
Source: Ambito
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