Miguel Angel Broda: "Argentina will not have money to pay the debt"

L & # 39; economist Miguel Angel Broda warned that Argentina "will not have money to pay the debt" over the next year and argues that the possibility of a default may occur even if Mauricio Macri achieve re-election. This week, the Executive Director of the International Monetary Fund (IMF), Christine Lagarde, he admitted to having underestimated the "incredibly complicated situation"of the Argentine economy and he also admitted that the control of inflation "took a lot longer" of the initial project.

"We do not have the money to pay the debt in 2020. We must incur debt, preferably in the domestic market. For this, we will have to put in place programs to intensify the fiscal consolidation and the control of the monetary aggregates, in order to reduce the risks ", he declared in an interview The chronicler.

In addition, he warned that "with Macri the possibility of a default value is not zero, because we do not have the funds to pay for what we owe. We need access to place a debt. We are running out of the Fund's motor engine. Next year, we will not have the quarterly flow of IMF funds. "

The IMF admitted to underestimating inflation and the Argentine economic crisis

"The economy is at a low ebb, it will probably stay here, some of the measures taken by the government could stimulate consumption a bit, the real payroll is still decreasing, but it has slowed down considerably and, with the new parity , it may stop falling or perhaps slightly increase, with which there may be some small incentives to consumption, "he added.

As for the upcoming elections, Broda said the economy "will not help the ruling party and that it will most likely lose in the primaries." If the distance is 5 or 6 points lower than that of Fernandez, the result could be reversed during the elections. The October election, but if it was over, it would affect expectations and we would have more requests for dollars and a little more instability. "

"Even though the movement of Alberto Fernández it seems more moderate than kirchnerism, today's world is concerned about the direction of its economic team. If Argentina does not continue its work, very difficult times are announced, "he added.

DR / FeL