Lopez Murphy: "The increase in country risk is very bad news" – ElSol.com.ar – Diario de Mendoza, Argentina

The former Minister of Economy, under the presidency of Fernando de la Rua, Ricardo Lopez Murphy, estimated Friday that "the country risk increase is very bad news because it marks the negative reaction markets at the announcement of the government ".

The country risk, measured by JP Morgan Bank, climbed 3.9% on Thursday and stood at 854 basis points after the announcement of economic measures taken by the national executive. Lopez Murphy warned that "the country risk is the center of concern" more complicated than we have and we must pay attention.

The economist, who ran the Treasury portfolio for only 15 days in 2001 after announcing a budget adjustment plan, criticized the government of President Mauricio Macri because "it was not possible for a program that finances a deficit with debt to succeed. ", In dialogue with FM Futurock.

On the measures announced last Wednesday, Lopez Murphy said that "the government publishes these unnecessary makeup elements, these are demands of society, but this is not what needs to be done," he said. declared.

In this line, he continued: "The price agreement is useless, it is very primitive to do something like that … Everyone knows that inflation is a monetary phenomenon with a fiscal root".

As for inflation, Lopez Murphy has estimated that "in the direction we are heading in, inflation should be between 35 and 40 points" for this year.

Country risk is an indicator that measures the interest rate gap between US Treasury bonds and their emerging peers and reflects the degree of market mistrust with respect to the repayment capacity of the Argentine debt.