2023-08-14 06:51:07
“We must be encouraged to summon a new, much broader majority. And commit ourselves to the next government being one of national unity. We must summon those who understand that solving the problem with the Fund, the difficulties of our exports and imports and building a country with more engines of the economy is fundamental”, said Sergio Massa in his first speech after knowing the results of the PASO . Although the message aimed to reap a greater number of votes to reverse the outlook in the October general elections, it also left some clues about the route map of the Minister of Economy.
Also read: PASO 2023 election results, LIVE: official data, minute by minute and all the information
The main economic issue that worries Sergio Massa today is the negotiation with the International Monetary Fund (IMF), mainly because in the Economy they are anxiously awaiting the organization’s board of directors to meet in the coming days to approve and release the US$7.5 billion agreed in the latest technical agreement.
However, the multilateral credit entity has already warned that in order for these disbursements to be triggered, the board’s guarantee will first be necessary, but it also demanded greater “effort” measures from the Government, mainly fiscal and exchange rate. “This agreement is subject to the continued implementation of the agreed policy measures and the approval of the Executive Board of the IMF, which is expected to meet in the second half of August,” the IMF said when the technical aspects were approved.
The Minister of Economy, Sergio Massa, together with the Managing Director of the IMF, Kristalina Georgieva, in the framework of the 2023 Spring Meetings. (Photo: Prensa Economía/Télam).
On the fiscal front, the Palacio de Hacienda let it be known that it has already begun working on the 2024 Budget, which must be presented no later than September 15 and whose main premise is to achieve “zero primary deficit.” This slogan, according to detail in an official Economy report, would be achieved through a reduction in “tax spending and other business benefits” that is equivalent to 4.5% of GDP.
On the other hand, in that same document, the Government proposed benefits for importers who use their own dollars, who will not pay Country Tax, VAT or statistical fee. It is a mechanism to release pressure from the depressed reserves of the Central Bank. In addition, he also promoted laundering for importers.
Lastly, Massa spoke in his speech about the need to improve exports and find new “engines” for the economy. Therefore, he will launch a project to stimulate the export of lithium carbon in Jujuy. According to estimates by the National Mining Secretariat, lithium exports between August and December can total around US$510 million.
#IMF #imports #income #dollars #economic #emergencies #Massa #raised #PASO