"The IMF was a tourniquet to avoid an economic catastrophe", according to López Murphy

Former Economy Minister Ricardo Lopez Murphy said that resorting to the International Monetary Fund was "putting a tourniquet to avoid an economic catastrophe" and said he was not working with Cambiemos on the creation of a plan to alleviate the crisis.

"In April, I knew that there was no choice but to appeal to the IMF and the multilateral organizations, even in this case it would be very difficult because we were going to face to a crisis of brutal confidence, "he said.

Similarly, he affirmed that "the program to be conducted is one that will last more than a decade, a very broad program, Argentina must develop and, like all countries that have experienced a crisis of this This will greatly increase the volume of exports of goods and services to replace, with this solvent demand, the demand for public expenditure and consumption financed by external debt, "he added.

On the other hand, he acknowledged that "it is generally more pleasant to borrow than to sell exports of goods and services, but that the latter is more durable, more realistic, so he recommended that" to create jobs and grow, we need to significantly increase our investments. "

"The stock of capital is now increasing by 1%, but for us to create jobs that match the growth of the population and absorb the unemployed and people artificially employed in the state, it is necessary that the growth of the stock is absorbed. " capital at least 3%, it means an increase in investment of five points, which means to bring the deficit to zero, "said the economist during a dialogue with Clarín.

In this regard, he stressed that "the correction to be made is of a structural nature", which "can not be done simply by sitting on the expense", which allowed to "set a financial ceiling to the expenses", although than "unsustainably". "

"To be sustainable, reforms must be undertaken and reforms are very broad – there are no easy reforms, social security and labor reforms are difficult in every country in the world, it is clear that problems that had not been addressed in the beginning, "he said.

Similarly, Lopez Murphy baderted that "the idea that we were going to be able to finance the legacy imbalances accumulated by the debt was false", which caused an "overestimation of the debt capacity", which was " the cornerstone of many mistakes they have made. "

"Today, we face the highest tax burden in our history and we are experiencing a fiscal crisis characterized by high, extravagant taxes that make life almost impossible for small and medium-sized businesses. This problem can not be solved by raising taxes, "he said in an interview with Clarín.
In addition, the economist pointed out that Argentina would have "an extraordinary harvest" and added that "we got rid of it, our meat exports began to fly".
"We have a wide range of tourism, energy, regional economies, knowledge-based industries, and software – all of this spectrum now depends on a lot of investment, like Vaca Muerta." Of course, a climate conducive to investment is needed. it reduces the country at risk, because with these rates, nothing is viable, and we have this level of risk and rate right now for the mistakes made by the government and for the uncertainty of the future, "he said. he concluded.

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