2023-06-29 05:40:45
After that, he said that The implementation of an economic plan will require a key tool to launch a virtuous process and that is credit.. In the financial sector, “we observe that, with the stabilization of the economy and the generation of confidence, the promotion of financing to key sectors will make it possible to reverse the need for foreign currency, promoting exports with added value. Said objective is absolutely possible and the Argentina has enormous potential to begin to see results in the medium term, even in the short term, and consolidate growth in the long term.“.
The head of ABA recalled that in recent years, credit to the private sector suffered numerous fluctuations that marked the cycle of stagnation in which we find ourselves: “The decreases registered respond to numerous reasons, among which are the uncertainty in the macroeconomics and the lack of articulation policies of the country with the international market. Thus, for example, the drop in total loans to the private sector in real terms from December 2016 to May 2023 is 40%, data that results from own work carried out with the statistical information published by the BCRA, exhibiting a negative trend. in recent years, which also shows that even with subsidized and negative rates against inflation, without confidence or a good business climate in general, very few investments of magnitude are made“.
For Cesaerio, power generation is central. “The exploration, extraction and production (upstream) of oil and gas, and its transportation, liquefied natural gas, the generation of renewables, minerals such as lithium, gold, copper, silver and uranium, among other projects. They need infrastructure to be valued and require financing that must be complemented with the participation of multilateral organizations and export credit agencies, to gradually recreate a local bond market and then return to the international bond market. A survey carried out among the main ABA entities shows that there are investment possibilities for approximately 70,000 million dollars, of which a significant part will need credit assistance in the medium and long term,” he added.
Currently, In the financial system there are deposits for 21 trillion pesos from the private sector, both from individuals and companies. However, the stock of loans reaches 9.4 trillion pesos. “This difference or low demand for formal financing is observed despite the innumerable number of mandatory subsidies to the credit supply implemented for more than a decade,” he explained.
“The other side of this policy of subsidies that do not work is that the monetary authority must absorb a large part of the bank deposits at the minimum regulated rate and the monetary issue through different monetary policy instruments, being the one that concentrates the greatest volume Liquidity Bills (Leliq). This instrument, along with the loans granted, are the backing of the money of savers in the banking system,” he said below.
Lastly, he asserted: “As previously indicated, with an economic plan that generates a predictable context or good stable business climate and a growth path, investment will surely be promoted and therefore bank credit will grow and undoubtedly the need to use monetary policy instruments to absorb deposits will progressively decrease”.
#Association #Banks #predictable #economic #plan #bank #credit #grow