The Minister of Economy, Sergio Massaassured that the debt in pesos “is absolutely sustainable” thus rejecting the criticisms of opposition economists who pointed out that it is leaving “a cheap pump“for the next government.
“The debt in pesos is absolutely sustainable and it will also be clear and demonstrated in the next few days, when we finish closing the second quarter,” Massa said in statements to the program Conecta2 in Cnn in Spanish.
The official said that the maturities of the third quarter are the only ones that have a strong component of private participation, made up of banks, mutual funds and insurance companies.
Massa reserves for the good news and prepares his team for the electoral war
“Not only it is not pricelessbut following the second quarter, the next government is going to have a much better profile and curve for 24 and 25 than this government had when it started, in terms of GDP,” he added.
The debt problem
Last Wednesday, the Palacio de Hacienda managed to efficiently overcome the first maturity of February Treasury bills, for $300,000 million, by achieving in the market refinancing for just over $400,000 million.
Although it is true that market operators consider that the Palacio de Hacienda will not have major problems to “rollover” the next maturities, the doubts are in those that occur between April and August.
In the fourth month of the year, it has to meet commitments in local currency for the equivalent of US$11.5 billion; May, $7.8 billion; June, US$13,000 million and July, US$15,000 million.
The markets have so far refused to lend to the State beyond August, which is the date of the STEP, where they understand that the opposition have a chance of winning and that this might lead to a compulsory reprofiling of maturities in 2024the agency reported THAT.
Strictly speaking, analysts suggest that the government’s problems are not of technical but political origin. One of the questions is that there is a high proportion of debt adjusted for inflation or tied to the dollarwhich makes it impossible for it to go liquefying due to inflation.
For Massa, the agreement with the IMF “is achievable”
On the other hand, Massa also considered that the agreement with the International Monetary Fund (IMF) is “achievable”, although doubts are being raised regarding the possibility that it can reach the reserve accumulation targets for this year.
“The proposal has to be how we multiply the generation of dollars from the Argentina has for the next years. And that has to be the fundamental discussion of Argentina,” said Massa.
Sergio Massa: “The goal is to put the three ahead in April inflation”
The minister showed hoping to achieve a reduction in inflationdespite the setback in January, in which the CPI rose to 6%, thus removing the possibility of reaching a number that “starts with 3” for April.
“The challenge of stabilize the economy by lowering inflation without generating harm is something that those of us who assume responsibility for this crisis set out to do and no bad result in a game is going to get me out of the fight in the championship to lower inflation,” he said.
ED
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