Sergio Massa announced a further fiscal adjustment, a cap on subsidies and denied a devaluation

After a week of delays, the hiring of Sergio Massa as Minister of Economy has finally been finalized to try to reorient the businesscurb inflation, add reserves and thus give a chance of survival to the weak management of the Front of All.

The highlight of Massa had two central moments: the inauguration at the Bicentenary Museum in front of 500 guests who expressed euphoria in the midst of a complex situation, with the absence of the vice president Cristina Kirchner and with the approval of President Alberto Fernández, who appointed him after expressing his confidence in the man who it brings together under its command the sectors of Economy, Production and Agriculture.

After an act of just 15 minutes, Massa arrived at the Palacio de Hacienda, where he met his team of collaborators, who until now still incomplete: He has not yet defined who will be the Deputy Minister nor has he officially confirmed that Darío Martínez will continue to lead the key area of ​​Energy, decisive both for the economic program and for the interests of Kirchnerism.

Despite the insistent questions of journalists at the first press conference that Massa held as minister, could not provide details on the missing designations.

But he put all the emphasis on the first measures of his management which will have four axes: fiscal order, trade surplus, reserve strengthening and development with inclusion.

After thanking the president, his collaborators and his family, the minister stressed that “the challenge is enormous and even if the difficulties are many, the global context can become a great opportunity for Argentina ”.

“I’m not a super nothing, no wizard, no savior. I come to work hard to try and help Argentina do well, ”Massa said upon reaching the position within the government for which he had been fighting for some time.

He is Alberto Fernández’s third minister in this area and took office after a brief interregnum by Silvina Batakis that ended when the alternative dollars, with the blue in the lead, almost reached $ 350.

After confirmation that it would be replaced by Massa, dollars fell sharply to around $ 280, while bonds and stocks rebounded and country risk fell. But due to the lack of definitions, the “mass effect” was diluted and a few hours before the oath, the blue dollar hit $ 300 once again.

“We have to face inflation with determination because it is the largest factory of poverty a country can have, ”Massa said. In response to press inquiries, she admitted that the July and August data will be “the most difficult in terms of inflation, and from then on we will go through a curve to gradually reduce it”.

The conference opened with a read speech in which he detailed the areas in which he will work and a series of measures that They will try to lower costs placing greater emphasis on cutting tariff subsidies, increasing reserves by giving exporters incentives to liquidate 5 billion dollarsseeking financing agreements with international banks and promoting a voluntary exchange of debt in pesos, among other measures.

When asked if he intends to accelerate the devaluation rate, he was evasive when he said that “macroeconomic planning is about correcting distortions,” but instead made it clear that does not foresee a strong jump in the official exchange rate: “I want to say it clearly: the only thing that the devaluation shocks produce is poverty and a huge transfer of resources ”.

Faced with the restructuring of reserves, the minister stressed that they are working on an agreement with various exporting sectors to liquidate $ 5,000 million over the next 60 days. He did not provide further details, but after the conference the head of the Central Bank, Miguel Pesce, said they will be offered an exchange with exporters at an attractive rate.

In the three passing days of August, the Central lost 450 million dollars in market sales to meet the demand of energy importers. The recomposition of reserves is essential to avoid the devaluation shock that Massa was talking about.

Another key point was that they will limit tariff subsidies even for those who continue to receive that benefit. The idea is that the 9 million families who signed up to apply for the subsidy will have a consumption limit to receive this benefit.

Massa did not specify how much the treasury will save with this measure. Nor what will the purpose be aid to retirees and employees to mitigate the effect of inflation which is preparing to close the year above 90%.