translated from Spanish: Seeking financial relief, government pushes measures looking at four years

The measures announced by Hernán Lacunza to generate financial relief for the government of Mauricio Macri and the one who comes, either a re-election or Alberto Fernández, will also seek to calm the markets. The main intention of what was officialized by the Finance Minister this afternoon was “the beginning of the next term to be stronger to initiate a growth process.”

Economist Joaquín Waldman explained that even after Congress passes the law sent by the Executive, in order to renegotiate conditions with debt holders under national jurisdiction “is voluntary negotiation and each creditor must agree with the state.” The analyst at the Ecolatina consultation considered that deferring payment terms can lead to “relief of the financial situation of the state and focus resources on growth,” which Lacunza talked about at his conference.

It is about curbing the adjustment pursued by the current government, committed to the Interncional Monetary Fund, and putting the focus on the country’s growth and the generation of dollars to meet that payment. In this regard, the economist Leandro Mora Alfonsín explained that with these measures “the government takes responsibility for the doubts that exist about the financial program”.
“If you alleviate the state’s debt burden each year, burden less tax, or have more room for expansive policies or debt at such high rates”

However, Waldman stated that “I do what is in foreign law and what the Treasury can do with the law that is in Congress are lengthy processes. The biggest burden is set in 2022-2023, if that is pulled forward, there is a way further way with the IMF.”

In this sense, Mora Alfonsín stressed that “the next government inherits a real economy devastated, the priority is to recover it, a necessary condition for that is to reshape debt commitments that can affect the current account.”

Original source in Spanish

Related Posts

Add Comment