translated from Spanish: Carlos Melconian: “received disaster not an administration arranges it”

the Economist Carlos Melconian was presented yesterday in the program A Dos Voces of TN, gave his opinion about argentina today, the agreement with the IMF, the value of the dollar and he criticized the previous Government, which “left a hole with the most largest-ever tax burden”.

“The former President of the National Bank said that”the disaster received not an administration arranges it”and that”policy is to wear long pants”, insofar as said that the path used in the first two years of management of Mauricio Macri were” wrong”.



The word of Melconian “has entered the economic policy at this stage with the program with the Fund and now will have to surf the program with the Fund. The inflation rate is the one that Argentina has since 2007. The exchange rate is a multi-currency disease that has the country for many years. The economy has gotten into a brete and is now riding it.”

“What is put on the stage is the agreement with the Fund. The Government had the correct diagnosis in terms of the disaster he inherited. The starting point was a disaster.” 

“The instrument that got underway, it was the program that is no longer, ignored the correct diagnosis. There is a mistake in origin. The wrong instruments ended two years after going to the Monetary Fund”. 

“Now there to discuss anything. What was a central instrument for the former President of the Central Bank, which are the Le BAC, is an animal get now by the new President. “Heritage is 70, the inheritance of 12, in which the last 4 were terrible, never saw anything so”. 

“I don’t know if the subject of the Fund set up by the Government, but it was ‘comes the Fund, stilled the waters’ and over with a number that surprised everyone, above all expectations and has not restored it (the rise of the dollar).” The only thing that matters are results.”

“Given that it is complementary to the agreement with the Monetary Fund it is vital that the bond market has been restored and falling country risk. The third question is the fiscal adjustment. I am respectful of what policy can and cannot be, but in the end, reality imposes it.”

“It is written in the agreement with the Fund that are 50 (fifty thousand million dollars) but that they are not all in the period Macri, has to be complemented with the return to the market. The silver of the Fund does not reach. We must return to markets complementing the silver Fund and for that should lower the risk, which is up bonds, dominate the market exchange rate and in the medium term that is created to the fiscal adjustment that is making Argentina.”

“I always was of those who believed that the disaster received not an administration arranges it. I have always said that the policy will have to put long pants. This is not a solution for an administration or a President. When I put him technocracy to the numbers that I see are not arranged in four years. My criticism in this period was that we lost two. In four, although you do things well, not it is arranged. Out there, comes this battle”. 

“At this historic moment the basic theme is in the most dignified way possible. “A scenario to come up with splendid numbers to 2019 there though it goes well”. 

“The challenge in fiscal weight on the side of spending and fundraising is very large. The Administration that went with the higher tax burden of Argentine history left a hole. If you say to me ‘they tightened to the private sector with taxes but they let fiscal balance’ leave you a margin of action. “Here let the fiscal pressure beyond top and a tremendous hole”. 

Original source in Spanish

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