The risk of default and hyperinflation increases due to the sharp decline in economic indicators

On the monetary side, he warned that there was a "broken BCRA which ensures further devaluation and higher inflation in the future, which (with the current level of repudiation of the peso) implies a risk d & # 39; hyperinflation ".

"The relevant responsibility in the development of monetary policy is more than three times that of freely available reserves. On the fiscal side, with the closure of international financial markets and the consumption of more than 75% of IMF financing, the financial program 2020-2023 seems very difficult to finance and the risk of default appears ", said the consultant in a report.

Hold on "The broken BCRA, which causes further devaluation and inflation, causes a decline in the demand for money, lowers the ceiling to the peso (dollar) and increases the debt-to-product ratio, which translates into an increase in the interest rate and the cost of capital ".

"Without growth, the resources needed to repay the debt can not be generated, but an increasingly large primary surplus is needed for the debt to be sustainable between the two," he said. Economy and Regions.

He noted that the "The combination of more debt, higher capital cost, more economic decline and a higher primary surplus eventually makes the debt unsustainable socially."