The curious government adjustment

Against what a sector of the Front de tous could imagine, the Government of Alberto Fernandez, your president, started an economic adjustment with all the letters, surreptitiously, but not so much.

A negotiation has started, Martin guzman with him International Monetary Fund, a extended installation agreement. This implies ten years of Monetary Fund in Argentina and the Minister of Economy underlines the advantages that this agreement will have. He never talks about costs.

So far the The Monetary Fund has never agreed to extended facilities without structural reforms economic in the countries where these facilities are granted. Labor reform, pension reform, state reform. Martín Guzmán doesn’t talk about it, but it looks like that’s what’s coming.

The government creaks

In case, a state reform was already faced when the Minister admits in the negotiation with the Fund and in the budget that the 2021 deficit must be lower than that established in the budget itself. This implies that the deficit must be reduced at all costs included, by eliminating, as has already happened, the IFE 4 and the ATPs which help companies to pay the wages of their workers. By 2021, these two elements are not mentioned in the budget, which is also accompanied by a reduction on this side.

The government’s plan change the pension payment formula. With which you will also save large sums for the benefit of the State and against retirees.

Another move that Martín Guzmán made this week to itry to maintain the dollar and not get shot. Mostly the white dollar is the official dollar and especially the stock dollar and the cash with Liqui was exchangeable for big investment funds, bonds they had in pesos and they issued bonds in dollars. Yes, Argentina’s national economic sovereignty of this government that history tells, gave them dollars instead of pesos.

Curious adjustment the government is facing and it is necessary to see whether the front of all within their problems, manages to build on and support these measures or will look elsewhere.