Silvina Batakis when she was sworn in as Economy Minister
In a scenario marked by the loss of reserves and pressure on the dollar, the new Minister of Economy, Silvina Batakis, anticipated this Tuesday that he foresees changes in objectives with the IMF facing the second half of the year, a period in which the agency expects a reduction in spending to achieve the annual objectives and the new official expects “tensions” due to the strong maturities of the debt in pesos.
“I will try to speak with the IMF, today I want to start from that topic and with all the issues of the Ministry. None of us would like to have this dialogue with the IMF, but there is an agreement, we have decided to find an agreement. We have to make it happen, see the goals and in each review of the goals surely there will be some changes because the world is constantly changingtoday because of the war issue, “Batakis told El Destape.
After taking over the duties at the head of the Palacio de Hacienda and meeting the business team, Batakis assured that this Tuesday he would initiate contacts with the body, which was not confirmed at the end of this edition. The organization said in the past few hours that it “hopes to work with Minister Batakis to continue supporting Argentina.” A deadline of $ 1,300 million will have to be paid on Friday.
Despite the doubts raised by Guzmán’s resignation and the negative reaction of the markets, the officer close to Daniel Scioli and La Cámpora is betting on achieving the annual goals, a real challenge given the difficulties in reducing the deficit and accumulating reserves. In this context, he acknowledged that the Fund must approve the second quarter review and that the second half of the year will be “complex”, inter alia due to the maturities of the debt in pesos.
“There is a very strong deadline in mid-September, even in late July, which will generate tensions. There will be tensions, but we have to work together, “he said. $ 475 billion is due in July and $ 1.2 trillion in September. The economy managed to cover its June payments with the help of the Central Bank , which in the past two days has bought $ 600 billion in secondary market bonds to back them.
During the day, the minister was working to assemble his team, whose members have not yet been announced, and maintained smooth contact with the President. In his environment, they assure him that he will be surrounded by former collaborators linked to his time in the management of Scioli in the Province and by Eduardo “Wado” de Pedro at the Ministry of the Interior. The energy secretary would remain in the hands of La Cámpora, according to Kirchner sources.
The morning, Batakis met with BCRA chief Miguel Pesce to monitor the markets. Since Monday, the entity has sold $ 270 million. In parallel, there were requests from the CNV at the tables to cut bond operations and lower the CCL, which fell by $ 7 to $ 274 on Tuesday. The lack of dollars puts pressure on the exchange rate, but the new official said on Tuesday that the exchange rate “is at competitive levels”.
Regarding inflation, he acknowledged that “It won’t drop to a single figure anytime soon. “ and stated that it will be necessary for the growth of the production structure. In this sense, you assured that “Argentine wages have lost purchasing power” and that “they are not the cause of inflation”. On the other hand, he agreed to reduce the expenditure for transfers to cover the cost of energy and that it is necessary to “proceed quickly with the reduction of subsidies”
Giovanni Manuel Barca
Source: Clarin
