Ezequiel Burgo
12/17/2020 21:38
Clarín.com
Economy
Updated 12/18/2020 9:06 AM
Why do officials' words often go in the opposite direction to the decisions made by the Executive?
As the economist Marina Dal Poggetto says, the government's economic discourse is
"schizophrenic
.
"
The Argentine economy raises questions about the comings and goings of those who drive it.
Even by the President himself.
A month ago, when an IMF staff mission arrived in Buenos Aires, the Government received the technicians with five offerings on the red carpet.
In forty-eight hours Martín Guzmán announced that Argentina would go for an Extended Facilities agreement (a program that includes commitments to make reforms), that Argentina would exchange debt in pesos for dollars so that foreign funds could leave the country, a law that established the Congressional approval for IMF financing and a new pension formula.
Those five signals were erased at a stroke by another five: the Senate's Frente de Todos bloc issued a letter criticizing the IMF, Congress approved the tax on large fortunes, at the impulse of
Cristina Kirchner the formula for updating pensions was modified
, Felipe Solá accused the US representative in the Fund of obstructing the agreement with Argentina and the Executive Power extended the freezing of rates.
"Clearly the latter of the rates is not good,"
admits a person from the Government familiar with the negotiations.
While Guzmán negotiates and even the President himself says one thing, the Government appears doing another.
"The program will not fall because of this - they
say in the economic team -
the key is the
shareholders
.
"
The United States
is the main one.
All eyes point to the meeting between Alberto Fernández and Joe Biden.
But the other relevant chair is that of
Germany
.
Yesterday the Argentine president wrote a letter to Angela Merkel, expressing his interest for the export agency, Euler Hermes, to grant guarantees to the banks that would finance the construction of the Chihuido dam against certificates of work progress.
The consortium behind the project could access
a loan of US $ 2.2 billion over 20 years at 6-6.25% per annum
.
Merkel made this offer to Fernández last February (the German Treasury backs Hermes).
Fernández never responded and the German offer was in danger of falling because Argentina had never formally expressed its interest.
Until yesterday, the President reacted by sending the letter.
The country needs not only German financing but also their vote in the IMF and for Guzmán to complete his task.
But to do so, a firmer course must be shown and corrections such as rates should be postponed.