Argentina’s Economic Chief Assures Investors, To Adjust Spending
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Argentina’s new economy minister Silvina Batakis has confirmed that she has started adjusting government expenditures with support from all ruling party factions.
This is coming barely a month after she was appointed to the position. She recently met with investors in the US a day after meeting with senior U.S economic policymakers and international lenders.
Inflation and heavy debt management hits Argentina
The goal of the meetings is to calm the nerves worrying over the economic issues surrounding the country. Argentina is the third-largest economy in Lain America, and Batakis wants to assure investors that the country will not capitulate amid challenges.
While the minister may not have been speaking openly about increasing spending, the recent meeting didn’t confirm that she was referring to a downward adjustment.
At the moment, Argentina’s economy is bedeviled by an increase in inflation, ailing peso currency, and heavy debt obligations. The currency weakened further last week, hitting a new low against the U.S. dollar.
The minister is assuring investors and other major economic stakeholders that the country is taking serious financial measures to remain resolute.
Managing partner at Adcap Grupo Financiero, Javier Timerman, who is one of the participants, commented on the development.
All Party Factions Have Agreed To The Adjustment
He stated that Batakis has assured that all political party factions have all agreed to implement the spending adjustment.
Timerman added that Batakis plans to rebuild the relationship with Wall Street. She also admitted that the relationship in the past has not been good and is open to taking the opinion of investment funds. However, no additional detail on Batakis pledge was provided.
Participants at the investor meeting were mostly the banking sector leaders in the U.S. and representatives of international investment funds.
Timerman stated that the fund is seeing Batakis as a technocrat. As a result, the investors believe her even more than Argentina’s former economic minister Martin Guzman.
Batakis was appointed after the sudden resignation of Guzman. Her appointment came immediately, as President Alberto Fernandez was looking to maintain confidence in the market. While some economic experts are advocating for increased spending, Batakis prefers taking a different approach to cushion the devastating impact of inflation.