They warn that Macri's policies increase the risk of default and hyperinflation

The consultancy Economy & Regions warned this Sunday that the risk of default and hyperinflation increases in Argentina due to the weakening of its main economic indicators.

The entity said the country is going through a "very serious monetary problem and a very important fiscal problem".

On the monetary side, alerted that there is a broken BCRA which provides further devaluation and higher inflation in the future, which (with the current level of repudiation of the peso) implies a risk of hyperinflation.

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

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

"Without growth, not only can resources not be generated to pay down debt, but an increasingly large primary surplus is needed for debt to be sustainable in the meantime," said Economy & Regions.

He pointed out that "the combination of greater debt, higher capital cost, greater economic decline and greater primary surplus eventually makes the unsustainable debt on the social level ".