In Press Conference, Economic Minister Batakis confirms IMF program

ARGENTINA - In Brief 11 Jul 2022 by Esteban Fernández Medrano

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In today’s press conference, Economic Minister Silvina Batakis (SB) gave some insight into what her economic objectives are. Although many of her announcements express an agenda, rather than actions that have effect immediately, her conference had a clear attempt to bring some tranquility to the markets, despite some of her rather heterodox economic interpretations. After a very volatile week, filled with speculation on whether there would be more cabinet changes or even a presidential resignation, SB addressed several of the market concerns on the fiscal and debt front. For a starter, to transmit some sense of unity in a very confrontational coalition, she was accompanied by the main representatives of the government’s economic team. That is, Production Minister Daniel Scioli, Agricultural Minister Julián Dominguez, Central Bank President Miguel Pesce, and head of the AFIP (local Internal Revenue Services) Mercedes Marcó del Pont. Tourism Minister Matías Lammens closed the list of ministers that were present. While he might not be of such relevance in economic discussions, as could have been Labor Minister Claudio Moroni and Public Infrastructure Minister Gabriel Nicolás Katopodisand, his presence seems to reflect the idea of cooperation with Batakis after her unfortunate comment that dollar demand, linked to tourism, conflicts with the local generation of employment. Her main announcements can be summarized as follows. Fiscal spending will be limited to cash availability. “The monthly budget quotas that the Ministry of Economy grants to the entire national public administration will only be in accordance with the projection of cash availability. In other words, we ar...