In the midst of strong political conflicts, El National government and in particular the Minister of Economy, Martin Guzman, seek to send signals to the markets and IMF, exhibiting some austerity measures and a slowdown in the fiscal deficit, which is already below 5% of the Gross Product. Meanwhile, the demands of the ruling alliance and the vice president Cristina Kirchner prevent the application of a fiscal adjustment.
For now, Guzman takes refuge in the numbers: he announced that in the first ten months of the year the primary deficit fell to 4.8% in relation to the Gross Product, very close to what was committed in the 2021 Budget, which is 4.5%, according to NA. The mission of Monetary Fund took these data to Washington after spending two weeks in Argentina, where he had an accident visit due to the false positive of Covid to a member of the delegation-
Anyway, the IMF held meetings with different sectors and the objective set by the head of the multilateral organization, Kristalina Georgievais to start writing a letter of intent for what would be an extended facility agreement to refinance payments and interest that are already approaching $ 50 billion. In the framework of this mission, the Fund’s envoys sat down with members of the Argentine Business Association (AEA), in a meeting managed by Guzmán, in the Ministry of Economy.
The businessmen said they agreed on the need to build consensus on pillars for economic stability and the articulation of rules of the game that contribute to predictability. They concurred Paolo Rocca (Techint), Enrique Cristofani (Banco Santander), Federico Braun (La Anónima), Alberto Grimoldi (Grimoldi) and the president of AEA, Jaime Campos.
Finally, in the midst of the convulsed political transition in United States, everything indicates that the agreement with the Monetary Fund would be left for after the assumption of Joseph Biden as president on January 20 next. The agency is betting that the letter of intent with Argentina is precise enough to guarantee that the mistakes of the mega loan granted to Mauricio Macri, where most of the dollars became capital flight, are not repeated.