Guzmán gave a strong signal to the market: “You must never stop paying credit in your own currency”

After two consecutive days of sharp market crash: in two days, pesos bonds lost 15%, dollar bonds fell to their lowest since the 2020 swap and country risk rose to over 2,000 points (its score highest in 9 months), Economy Minister Martín Guzmán came out to give a strong signal. “You must never stop paying credit in your own currency like the previous government did”She said.

The official spoke of falling bonds and rising country risk and criticized those who question the feasibility of paying off the debt. In an interview with C5N, Guzmán went to the intersection of economists and former officials who envision a possible default on local currency payments. “We would never do that” the official warned.

“Credit in local currency is a pillar, so” you never have to stop paying for it “stressed on the possibility of devaluation.

Then, he recalled that it was Mauricio Macri’s government that charged the credits taken at the local market and entered the “re-profiling”. “That problem was nonsense that we solved”he highlighted.

And in that sense he added it “Being able to do this has given us funding for public policies such as the Family Income Emergency (IFE) and the ATP (Assistance to Work and Production)”.

Agreement with the International Monetary Fund

“The first review has been achieved and completed,” Guzman said. And in that line he added that in the meantime Argentina continues on the same path of growth “build the conditions so that there is more stability and toughness”.

However, he made it clear that due to the Russian invasion of Ukraineto “the profile of imports and exports has changed” and modified the quarterly accumulation forecasts. This forced the government to make changes, “We have kept the goal of the year, adapting the goal for the quarterfinals according to the seasonality presented by the war in Ukraine.”

YN