Silvina Batakis and Cristina Kirchner, two figures analyzed by the editorial staff of the Financial Times. Photo Martin Bonetto
The Financial Times it represented a dark horizon for Argentina, in the midst of the economic and social crisis afflicting the country. The prestigious British media published a strong editorial on the situation: it said that “financial ruin is on the horizon” and questioned the effectiveness of the plan of the Minister of Economy, Silvina Batakis.
In addition, he called for stricter treatment from the International Monetary Fund (IMF): “Hard love, more than patches, is what Argentina needs.”
“It is time for the IMF to show Argentina some hard love”, is the title of the journalistic note, which bears the signature of the editorial staff of the newspaper dedicated to finance.
After stressing that our country should experience a boom due to its abundant natural and agricultural resources in the context of the Russia-Ukraine war, he warned that Argentina, in reality, “is heading towards staggering in one of his periodic collapses “: High inflation, skyrocketing blue dollar, debt pressure and investor distrust.
Central Bank issuance and local debt, two critical factors according to the Financial Times. Photo Rolando Andrade Stracuzzi
He also warned against the “abundant” assumption of local debt and the issuance of pesos by the central bank. In this context, assures the Financial Times, “financial ruin” is “on the prowl”.
“If the economy is bad, you can say that politics is worse,” added the London outlet. You drew attention to the stage between Alberto Fernández and Cristina Kirchner. And he claimed that the departure of Martín Guzmán (“Cristina Kirchner and her allies hated him”) removed “her only credible figure” from the national government.
In this sense, he reiterated his doubts referring to Silvina Batakis. “Her little-known replacement for her quickly pledged to meet the IMF goals. The odds, both political and financial, are against her,” the Financial Times warned, after the official’s quick rapprochement with Washington.
The Financial Times reiterates its doubts about Silvina Batakis’ program. Photo Juan Manuel Foglia
The Financial Times and the role of the IMF in the Argentine crisis
From there, the editorial leapt to the role the IMF should play with Argentina, from its point of view. He reviewed the debt problems of Mauricio Macri’s government in 2018, which deviated just one year later (“Reprofiling”, as the then minister Hernán Lacunza made clear). He added: “History may be on the verge of repeating itself.”
In addition, he launched a subtle questioning of the Monetary Fund. “It seems increasingly that the Monetary Fund failed to set sufficiently tight conditions when it renegotiated the last bailout in March,” he said of the government’s agreement with the agency during Guzmán’s trip to Washington.
Afterwards, he went on to criticize the Fund’s approach: “The usual Argentine politician, the IMF, made an effort to present himself this time as a useful partner for the usual debtor, instead of an austerity priest“And he complained that, as a result, the new program with the IMF” is already in trouble. “
Alberto Fernández and Kristalina Georgieva, head of the IMF. The Financial Times called for more “hardness” from the body.
The conclusion came with a strong request to the body headed by Kristalina Georgieva. “In front of a weak government By clinging to Peronist populism and failed economic policies, the Fund would have been better off insisting on stricter targets to inspire trust and investment in businesses, ”the Financial Times reports.
And he concluded: “Hard love, more than patches, is what Argentina needs.”
IT
Source: Clarin
