economic, Roberto KachanowskiSpeaking with Canal E, he referred to the scenario of Argentina’s return to international debt markets and highlighted the risks facing the government, especially with regard to central bank reserves, today at negative levels.
“I’m worried that he could get into debt, because let’s see, it would be good if he just extended his contract, Let’s hope they don’t go into debt to pay expenses.“Because this is the history of Argentina,” said Roberto Kachanowski.
What is the correct way to get into debt?
In a similar vein, he talked about the sustainability limit: “So, if it’s just rolling over the debt and paying the interest with the tax penalties, well, tick one. Now we have to see what interest rate they will pay“We don’t know.”
Kachanowski insisted on distinguishing between the virtuous use of debt and the risky use: “Argentina’s return to the capital market is good news in terms of the potential for debt renewal. It’s bad news if you use it to get into debt to pay expenses.“.
Regarding the official purpose of the bond, he said: “It is to pay the capital, I think. Because the interest must be paid with its financial deficitwhich he doesn’t have, but it doesn’t matter.”
The interviewee described the most sensitive point in the external forecast: “Net negative reserves, Which today was less than 17,000. And what the box tells you is that You had to be at minus 3,000“.
The central bank situation is complex
In this sense, he commented on the main challenge: “Here lies the problem This is how a central bank can improve its reserve position.“If no one capitalizes it, I don’t know who can capitalize it because they have nothing to capitalize the treasury with.”