City analysts celebrated fiscal moderation but expect concrete measures

The first press conference of Silvina Batakis at the helm of the Ministry of Economy will serve, according to City analysts, to put the market in “wait and see” mode.. Economists gave a speech pointing to some tax restrictions, but they warn that concrete measures have yet to be knownin order to overturn the negative expectations of the last few days.

Martín Vauthier, of the consulting firm Anker, said: “At least from a discursive point of view, emphasis on taxation in improving the efficiency in the management of the flows of state fundsI think it is something positive. The same need a positive interest rate, that the BCRA interest rate is aligned with that of the Treasuryit is also favorable but what There are no concrete measures “.

For Vauthier, You need to know the fine print on how the need for monetary financing will be reduced. “This is the most relevant thing that should appear to give a signal to the market that there is a solid program that has credibility with the market and is also backed by politics.”

For its part, Martín Polo, de Cohen pointed out that Batakis advertisements “a little sign that the government knows it has no room for action, which must give a signal to the market of greater moderation and macroeconomic order. What has been announced is in harmony with a minister with the fragility with which he hires ”.

“The market does not expect much from Batakis, it does not expect an Orthodox minister“, Polo said and added:” The market focuses more on results than on the speeches and measures announced by Batakis seem to take time. On public spending and tariff segmentation “.

Basically, the focus will be on the reaction of the local market Regarding the definitions of Martín Guzmán’s successor on pesos debt support: “We propose the creation of a Debt Advisory Committee that evaluates, analyzes and makes proposals on sovereign debt in pesos,” said the new Minister of Economy.

For Claudio Caprarulo, of Analytica what was announced: “It’s a good first step that helps calm expectations but at this point seeing is believing. The important thing is that the new approach is supported and that the government can show concrete results, for example the fiscal result of July as soon as possible in August “.

The economist highlighted a positive aspect of Batakis’ presentation on Monday “The presence of the entire economic cabinet, a sign of greater coordination and that everyone is aligned with the new changes”. Furthermore, that “measures are being implemented to comply with the agreement with the IMF”. However, he warned: “These are changes that require strong political support.”

YN