The Argentine Minister of Finance
Nicolás Dujovne, said today that the country will need next year to finance 8,000 million dollars, in addition to those provided by the International Monetary Fund (IMF) loan- Find Out More http://www.sasa-s.com/unfounded-tax-system-v-informed-tax-system Sasa S.
In a committee of Parliament to analyze the agreement with the IMF, which was agreed at 50,000 million for the next three years, the minister said that this loan does not increase the debt, but replaces market debt, “expensive and volatile”, by the agency’s debt, “stable and cheaper”.
Faced with questions from opposition lawmakers who questioned the sustainability of indebtedness, Dujovne insisted that the Executive will accelerate the fiscal adjustment and intends to exit the red numbers – in the primary deficit – in 2020, for which he was “absolutely convinced” of what the situation is sustainable and Argentina will remain solvent.
With respect to a possible policy to begin “rescuing” the short-term bills issued by the country, he argued that “a very fluid market would be needed”, so now the Government does not think about doing it “in a systematic way” because does not want to issue more debt than necessary.
Dujovne said that before the announcement by the president, Mauricio Macri, they had not negotiated with the IMF a possible rescue, as the opposition accused him, and insisted that they went to the institution after the “turbulence” caused by the combination of the drought that affected agricultural activity, the rise in interest rates in the United States and the rise in oil prices.
The objective of resorting to the Fund, according to the minister, is to avoid a new crisis, and argued that the alternative was the one that was taken in other similar occasions in the country, “doing the easy”, which exemplified with the exchange “stock” (restrictions on the purchase of foreign currency) or the non-payment of debt.
The minister argued that Argentina had been growing seven consecutive quarters (until the first three months of this year), and although this trend is interrupted by recent economic difficulties, the nation will grow again “very soon” following the same model as the first two and a half years of management, he added.
On behalf of the opposition, the Kirchnerist deputy Agustín Rossi reminded him of his appearances on television, before entering the government, in which he was against the IMF, accused the government of “lying” about negotiations with the agency and He said that the agreement is not “virtuous”, and that he was called on “for fear” of falling into a suspension of payments.
The deputy Marco Lavagna, belonging to the opposition Front Renovador, explained that for the country to go ahead, it needs internal consumption and exports as well as investments, criticized that the investments that are coming to the country are mostly financial and said that the growing trade deficit makes more vulnerable to Argentina in the face of the external conjuncture.
Dujovne admitted that he had assets abroad, although invested in Argentina, and argued that he brought “part” of them in 2017 and the remaining amount this year.
As for the recent news that point to that was added to the fiscal laundering that prompted the Government, claimed that it belongs “to his private life before being an official”, and did not want to respond because that information, he said, comes from a “band of criminals “that deals with fiscal data.