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Martín Guzmán met with investors in New York and promised them 'predictability' and 'clear rules'

2021-03-20T00:19:29.896Z


The Minister of Economy met with representatives of investment funds. But on Wall Street they are asking for an agreement with the IMF to reduce uncertainty.


Paula Lugones

03/19/2021 5:52 PM

  • Clarín.com

  • Economy

Updated 03/19/2021 9:07 PM

The Minister of Economy, Martín Guzmán, met this Friday in New York with several representatives of investors to whom he promised

"clear rules"

and

"predictability",

but on Wall Street they emphasize that it is necessary to conclude an agreement with the Monetary Fund International to clear doubts and

"reduce uncertainty".

The minister met at the Argentine consulate in Manhattan with some representatives of funds that participated in the debt restructuring.

Seated at a large table, 8 people - wearing chinstraps - listened to the minister review the objectives of his administration, his projections and macroeconomic plans, and Guzmán also answered questions.

"We are charting a consistent and sustainable path for Argentina, with predictability and clear rules of the game that favor an environment conducive to economic decisions

," Guzmán said at the meeting.

The minister also stressed that it is necessary to respect fiscal sustainability because it is a pillar of economic stability, according to official spokesmen.

Guzmán said that the Alberto Fernández administration is working to solve the country's structural problems and that the government seeks to articulate the rules of the game with the foreign exchange-generating sectors to boost export growth, it was reported.

After many zoom meetings and a historic debt restructuring agreement, today in New York we had a productive meeting with investors who participated in that process.



Continuing to build understandings contributes to deepening the stabilization of the economy.

pic.twitter.com/QPlNuymTv0

- Martín Guzmán (@Martin_M_Guzman) March 19, 2021

One of those present at the meeting, Sebastián Vargas,

director of debt strategies for Latin America at Barclays, highlighted to

Clarín

one of the axes of Guzmán's message: “They think that

Argentina must remain integrated into the world

and in the context of a renegotiation imminent with the Paris Club and the Fund that is important.

I associate that with the search for credibility: they are not thinking about a madness, considering that this year there are important maturities to pay ”.

Another point of the minister's message, which he presented for two hours with powerpoint, was that "the Government seeks to rebuild the reserves and that the dollars are to be used for production, not to pay more debt," said Vargas.

Upon Guzmán's arrival in New York on Thursday, some investors and Wall Street experts had indicated to this correspondent that the minister

"had nothing to offer"

for now and that there was an atmosphere

of skepticism

about his visit since he had not yet an agreement had been reached with the Fund, which they consider essential for economic stability.

Vargas, however, believes that "it is important that Guzmán come and open up to talk with investors, I see it as valuable," he said, although he emphasizes that agreeing with the Fund is of a

"brutal urgency",

as well as with the Club Paris, because

"uncertainty will be reduced

.

"

The expert also adds:

"Everyone wants to see to believe, they want to see an agreement and thus clear doubts."

Hans Humes,

president of Greylock Capital Management and who was also present at the meeting, told

Clarín

that "it was a good idea to use the opportunity of Guzmán's trip to communicate with investors here."

Asked if the minister had offered any indication as to whether the agreement with the Fund would be postponed after the October elections, Humes said:

"He did not say anything about a date for an agreement, but it is obvious that the negotiations are advanced."

"At the Fund they are showing great flexibility," he added.

"I think Guzmán can speak their language and that he has room for an agreement, but he didn't say anything about a date."

Regarding the negotiations with the organization, he added: “Negotiations with the Fund will always be difficult, but

we do not need to know the details of an agreement, we need to know what is going to happen

.

The good thing is that, for now, I don't think the Fund needs a program with too much austerity, it

will leave room for the Argentine economy to grow ”.

Carlos Abadi,

executive director of financial consultancy Decision Boundaries, was not invited to the meeting.

"The meetings were requested by the bondholders, who are frustrated by the result of the restructuring," he told

Clarín.

"This negotiation badly faced by the creditors left Argentina complete fiscal freedom and led to country-risk values ​​that destroyed the value of the bonds."

"The negotiation with the Fund is going to be the moment of truth

because it is going to require the government to prepare the multi-year budget that the bondholders failed to require and the minister avoided doing as a prudential exercise," said Abadi.

Guzmán will travel to Washington to continue negotiations with the Fund face to face.

On Tuesday he will meet in the morning with Julie Kozack and Luis Cubeddu, the officials who follow the Argentine case, and

in the afternoon they will have a long-awaited meeting with the managing director, Kristalina Georgieva.

Guzmán will also meet with World Bank officials and it is estimated that he could hold a meeting with technical officials from the United States Treasury.

This Friday's meeting in New York was attended by the director of Monarch Alternative Capital, Ian Glastein;

the vice president of Contrarian Capital Management, David Fink;

the managing director of Fintech Advisory Inc, Andrés Lederman, and the president of Greylock Capital Management, Hans Humes.

Also present were the representative of Oaktree Capital, Jonathan Plavnick;

from Stonehill Capital Management, Samir Arora, and Pilar Tavella and Sebastián Vargas, from Barclays.

Washington.

Correspondent.

Source: clarin

All business articles on 2021-03-20

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