"In Argentina, the IMF is associated with economic failure", according to an expert

The Argentine president, Mauricio Macri, revealed on Tuesday that he began to negotiate with the International Monetary Fund to receive a loan, an announcement that awoke all the alarms in a country in which, according to the expert José Luis Espert, that entity is associated with “economic failure”- Ipadkopen payday loans new.

“It has been, more than anything, a slap of the drowned to calm the financial market for a week,” said the Argentine economist in an interview with Efe in Buenos Aires in which he considers the message of the Government was “not serious” and ” shaky”.

After several days in which the peso suffered a sharp depreciation against the dollar that failed to stop either the measures of the Executive or the Central Bank, Macri revealed yesterday that it agreed with the managing director of the IMF, Christine Lagarde, to start negotiating a “financial support line”.

He said that this loan will “strengthen” its program of “growth and development” and receive “greater support” before the “new global scenario” to avoid a local “crisis”.

Espert assures that it is a “bad news” that shows that Argentina “is in trouble again”, something that citizens do not understand after having heard “so many loans” from the current government by the international community.

“In Argentina, the Monetary Fund, and rightly so, is associated with economic failure,” he said, referring to the experiences of the past, especially the harsh demands of the agency after the loan granted to the southern country in 2001, during the most crisis of its recent history.

the smell of failure” is in the environment, the expert warns that the current situation is not the seriousness of the then.

the smell of failure" is in the environment, the expert warns that the current situation is not the seriousness of the then.

 

“This is to have gone to the division B of football: we have descended of the category”, aims the author of ‘Argentina devoured’ (Galerna, 2017), who criticizes that the Executive of Macri did not listen to the warnings of the specialists and denied the reality “for arrogance”.

The government “lies” when it attributes the situation of the exchange market to the international situation and, specifically, to the rise in rates in the United States, because the current crisis has been “totally self-inflicted,” he says.

“The world may have pushed him to be in this critical situation, may have been one of the triggers, but the root cause is that the Government has not shown a realistic diagnosis of the situation he received” from the Government of Cristina Fernández (2007- 2015), he adds.

Espert believes that the underlying problem lies in the fact that the South American country has a “gigantic” fiscal deficit, of a size “unpayable” by the private sector, in addition to labor laws “from the era of Italian fascism” and a very closed economy to trade.

“These are all things that Argentina has to change to have a future, and Macri was responsible for not saying anything, but for selling a happiness of yellow balloons that had no sustenance,” he complains.

In addition to the fiscal measures, the economist considers that the other major fault of the Executive is its monetary policy, since, since the conservative front changed we came to power in December 2015, inflation did not fall and continues as the second highest the region, only behind that of Venezuela.

For that reason, it does not understand that the Executive insists on maintaining its target of 15% inflation for this year when, only in the first three months of 2018, consumer prices accumulated an increase of 6.7%, and believes that it will end for being around 25%, as in 2017.

“Inflation is the worst tax that can be on the currency”, which is why Argentines tend to think of a currency that does not deteriorate as much, as is the dollar, he says.

All this situation has caused, in his opinion, the “failure of gradualism” of the Executive as it was raised up to now. As of this moment, another type begins, which will depend on the conditions imposed by the IMF when providing a line of credit.

This is estimated to be between 25,000 and 30,000 million dollars, something that Espert thinks will not work, because the Central Bank has already lost 8,000 million reserves in the last two months and next Tuesday, due to the expiration of the Lebac (the letters of the monetary entity) will get rid of half of the remaining money.

Although he admits that financial crises “have caused governments to fall” in the country, he hopes that the same will not happen with Cambiemos, which has generated “favorable movements”, such as the end of the exchange rate trap or the exit of the cease of payments of external debt, which attracted financial capital and caused the economy to recover and reduce poverty and unemployment.

If Macri manages to complete his term, he would be the first non-Peronist president to achieve it, something that the economist considers necessary to “demonstrate to a society that is very sick that there is life after Peronism.”