JP Morgan summit: Dujovne and Sandleris have come to calm investors' fears

Nicolás Dujovne, Yesterday, only one investor meeting took place as part of the IMF Spring Meeting. There were more than 400 bank executives and funds in a crowded auditorium listening to the finance minister and the head of the plant. Guido Sandleriswho were accompanied by the finance secretary, Santiago Bausili.

All three had to cope with the market's anxiety about the great uncertainty of elections and the losses incurred as a result of the fall in the price of bonds, with a country risk always higher than 800 points.

The meeting was organized by investment bank JP Morgan at Park Hyatt Washington and was moderated by Diego Pereira, chief economist for Latin America. The entity bought early in the management of Exchange a significant amount of Argentine bonds and also played a key role in settling with the bondholders in 2016, which allowed the government to let the default and recover full access to the financing market.

Dujovne sought to present a positive program on the evolution of the economy. He reiterated that the first quarter figures confirm that the economy has collapsed and that the recovery will be more palpable from the second quarter.

The minister also spoke about the progress of the agreement with the IMF: "We achieved the objectives that we had set for the first quarter. We recorded a decline in our revenues compared to our estimates due to lower export duties. But our commitment is to reach zero deficit and we will achieve it"

In this sense, he said that primary spending will not experience larger nominal increases than expected, despite the fact that inflation is higher. And also that two thermoelectric power plants will be sold, which will help boost the collection.

But the most tense moment came with one of the questions from the public:who badures us that they will be able to pay the debt in 2020 If the country risk does not fall below 800 points? Dujovne's response mixed politics with The fundamentals from the economy: "Next year, we would only need $ 5.2 billion in new investments. But we also think that the risk will decrease considerably when Mauricio Macri is re-elected, that is to say when the electoral doubts are lifted. "

Sandleris spoke of the progress of the monetary plan and had to respond to high inflation levels. They even asked him about what could happen if the indexes do not fall from the month of May, contrary to what Central expects. "Monetary policy has instruments to apply corrections, ranging from rising interest rates to accelerating the absorption of pesos. If necessary, we will will. "

He also went out to dismiss versions that spoke of a possible change in the tapes system. "We do not plan to ask the Central Bank Fund to intervene before the dollar hits the roof of the band, we do not know where these rumors come from."

In the economic team, it is difficult to obtain more reliable results as doubts grow about the outcome of the elections. "If Cristina has to go down, the bonds fly, at least start", is the phrase reiterated by banks and funds that have Argentine badets. In the meantime, they prefer not to take risks and wait until the situation is clear.

Alejandro Catterberg, director of the consulting company Poliarquía, participated in an event organized by Banco Itaú and also received the questions of badysts convened. Some still insist on the possibility that the candidate for change is finally Maria Eugenia Vidal. And everyone wants to know what would happen in a possible vote between Macri and Cristina. "The elections are still far and the scenario is open, but the president is more likely if the dollar is calm and the economy begins to rebound"was the answer of the political scientist.