For the director of the consulting firm PxQ, Emmanuel Álvarez Agis, the new agreement with the International Monetary Fund (IMF) is detrimental to Argentina.
"Rather than comply with the terms of the IMF agreement, I would rather default," he said.
The economist pointed out that it is detrimental because
they maintain the goal of the fiscal deficit at a time when collection will drop
as a result of the drop in withholdings due to the drought.
In dialogue with El Destape radio, Alvarez Agis highlighted that the conditions changed, basically due to the drought, and then for him.
the IMF cannot maintain the same requirements, except for the reserve target.
"We cannot continue with the agreement as if nothing had happened
," he stressed.
"The agreement should change because the situation has changed drastically
," said Cristina Kirchner's former Vice Minister of Economy.
In this sense, he added that it is
"very serious"
that the current conditions continue.
"Argentina is going to face the worst drought of the century with a loss of US$20 billion in exports
," he said.
"It is a situation beyond the control of any government," he said.
And he added: "They ask to maintain the spending dynamics when it is known that
Argentina is going to lose a lot of revenue due to the drop in withholdings
. That is, the adjustment in spending is going to be much greater.
They are giving us matches in the midst of the crisis "
.
Along these lines, he stressed, "I was the first to say that we must settle with the Fund. But when circumstances change, the agreement must be changed."
Álvarez Agis alerted for the future of Argentina if it is assumed to comply with this review of the agreement with the IMF and recommended asking the IMF for a disbursement for the crisis in productive matters.
"Let's propose a compensatory policy because we are going to have a difficult 2023
," he warned.
"If these are the parameters, I prefer to break the agreements with the fund
," he said.
"We cannot continue with the same recipe if the world has turned upside down," he said.
And he added:
“This year with the worst drought of the century we should lower the withholdings.
We cannot lower them (withholdings) because the fund wants us to have the same fiscal goal.
Circumstances have changed and we cannot subject Argentine citizens to suffer the impacts of the worst drought of the century without doing anything”.
The former Vice Minister of Economy of the last government of Cristina Kirchner recalled:
"The money that the Fund lends us is to pay the Fund itself, eh
."
NS
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