The Secretary for International Economic Relations of the Foreign Ministry, Cecilia Todesca Boccostressed that the program agreed by the Government with the International Monetary Fund (IMF) will allow “grow to stabilize” instead of “stabilize to grow”and argued that the dissent within the political forces of the opposition and the ruling party is linked to “the size of the problem.”
“The agreement allows growth to stabilize and not stabilize to grow,” said Todesca Bocco this Saturday in dialogue with Radio Miter and El Destape Radio.
In this sense, he asserted that The Argentine economy needs to “recover reserves, generate employment and reduce inflation in a very difficult context”.
“It is a feasible and reasonable agreement, and that takes into account what the Minister of Economy (Martín Guzmán) placed as the axis: take care of real spending and investment, and that Argentina can grow,” added the official.
However, he indicated that it is necessary to “advance quickly in it to put energy on the agenda of production and work”.
Todesca Bocco considered as “logical reactions” the “differences, nuances and discomfort” regarding the agreement.
“It is a feasible and reasonable agreement, and that takes into account what the Minister of Economy (Martín Guzmán) placed as the axis: take care of real spending and investment, and that Argentina can grow”Cecilia Todesca Bocco
“When an economy like ours gets into debt in this way and with this payment schedule, the problem is very big and difficult to solve; and then discussions are generated around this, ”said the economist.
After which, he opined that “the dissent, the different opinions and the friction within the two coalitions have to do with the magnitude of the indebtedness and what it means for the Argentine economy for many years”
“Many of the things that (the deputy) Máximo Kirchner and La Cámpora say, I share them, such as that this loan had a size and a schedule that can only be explained by political reasons,” said Todesca Bocco
Likewise, he questioned that “some officials and members of the opposition continue to discuss whether they indebted the country or not.”
“They signed the agreement with the IMF, they asked for the 44 billion, and suddenly it seemed that this did not exist”criticized the official, and recalled that it was the “fastest indebtedness process in all of history, in foreign currency and where everything that came in escaped to pay for the financial cycle.”
Despite this, he asked both forces for “responsibility” to “be able to turn the page” and questioned that “there are a number of laws that have to do with the productive sector such as the Agroindustrial or the Buy Argentine that are stopped in Congress since last year for prioritizing electoral times.”
“The debt is here and people are waiting for us to move forward. There are things that are not resolved because we have these payments ahead of us, and so it is very important that the political forces agree,” said the former deputy chief of staff, who considered that the political leadership “has an obligation to say how this continues to the people”.
He pointed out that “the work that needs to be done begins with the agreement and does not end with it”, and that the Government must continue with “the productive agenda, which has already brought very good indicators, with growth in industry and exports ”.
“It is necessary to generate the conditions to dismantle this external strangulation that characterizes the Argentine economy and the only way to do it is to modify the productive structure; and that is not done from one day to the next”, expressed Todesca Bocco.
Finally, when asked about the evolution of the exchange rate, she confirmed that the agreement contemplates that “there will not be an exchange rate jump”, since it “would fuel an even greater jump in inflation”.
The agreement entered yesterday afternoon in the Chamber of Deputies and on Monday it will begin to be debated in the Budget Commission of the Lower House, with the presence of the Minister of Economy, Martín Guzmán, and other officials of the Executive Power.
The new program -called Extended Facilities- has a duration of two and a half years with quarterly disbursements to refinance the debt taken during the management of former President Mauricio Macri, while its cancellation will be between 2026 and 2034.
