Minister of Finance Nicolás Dujovne predicted yesterday that the economy will end the year with a one percent drop and revealed that the International Monetary Fund (IMF) was asked to make the next payout of 3,000 million dollars in September.
The official said that the Fund was also asked for the section signed by Argentina, which stipulates that the Treasury will conduct a process to repurchase the debt of the Central Bank of the Argentine Republic (BCRA) for a total of 15,000 millions of dollars until the end of 2019.
In a dialogue with journalists from international news agencies, the head of the Casa Rosada economic team bleached that the gross domestic product (GDP) 2018 will close in red and notes that a large part of the contraction corresponds to the drought that hit the agricultural sector.
"Of course, the growth was less than we expected, the direct impact of the drought was 1.3 points of GDP, but if we look at the indirect effects on agricultural machinery, transport and trade, the drought has two points this year. growth, "said Dujovne.
According to reports, the minister reiterated that the situation will also be subject to the uncertainty caused by the legal mega-accusation of the supposed framework of corruption during the Kirchnerian governments, which already involves former officials and older businessmen in the first phase.
Dujovne did not hesitate to point out that the contraction of the besieged Argentine economy will be irreversible in the coming months, the magnitude of which had been glimpsed last week when it became known that the activity in June, in the first phase of the crisis, with 6.7 percent fell. I would change.
For the national official, the crisis will return next year when, according to his calculations, GDP will grow by 1.5 percent.
Dujovne's bet is that the economy begins to recover when the effectiveness of the adjustment plan to reduce the budget deficit in 2019 starts to fall to 1.3 percent.
For the time being, the minister indicated that the Fund was asked to continue the second payout of the mega credit of up to $ 50,000 million, with Argentina agreeing last June, just after the outbreak of the currency debacle.
The Casa Rosada has the procedure for the staff from the multilateral credit agency to receive 3,000 million dollars in September. It even appeared that he would have consulted on the possibility to extend the original credit to 65,000 million dollars.
The government is of the opinion that there will be no doubts to anticipate the next payout, especially after the results obtained by the envoys of the Fund during the mission they carried out in Buenos Aires days ago.
Formally, the IMF board was also asked to reject the agreement stand still the item that determines that the Treasury repurchases non-transferable invoices that are the property of the BCRA.
The original undertaking entered into by the Cambiemos administration indicates that the Treasury will distribute $ 3.125 million quarterly to acquire those papers held by the monetary authority, and that the entity headed by Luis Caputo will receive those funds. to disarm the funds. stock from Lebac.
But the scenario worsened, the external front caused additional financial pressure and doubts about that original plan were in sight when Argentina's country risk exceeded the 700 basis point threshold.
In this respect, Dujovne acknowledged that the procedure caused a "source of uncertainty" in the market.
"That operation was conceived as a way to the stock from Lebac of the Central Bank. But whenever the BCRA continued with a program with its own funds or with its own design for the cancellation of Lebac, we considered together with the Fund that it was no longer relevant to maintain it, "the Minister explained to international bodies.
The dollar does not stop
Yesterday also the vulnerability of Argentina became clear with the new advance of the dollar at its historical maximum.
The central intervened twice a day and placed $ 210 million at the negotiating table, but could not prevent the North American currency from continuing to rise and closing at 31.57 pesos in the retail space.
It came from two consecutive waterfalls.
The recovery came after transcending that the national government would negotiate a major loan with international private banks and the US Treasury that tried to complete the 2019 financial program and thus address the credit questions.