Thursday, September 20th 2012 - 22:59 UTC

Finance minister tells Congress world crisis will not affect Argentina

Finance minister Hernan Lorenzino said on Thursday that the international crisis will not affect Argentina and attributed this to the policy of drastically cutting the country’s sovereign debt which now stands at only 40% of GDP.

Lorenzino optimism has gone beyond recent statements from his master

“The policy of getting out of debt implemented by the government of President Cristina Fernandez has been crucial. With debt at 40% of GDP, it means we’ve got rid of the heavy burden from the international credit organizations (IMF)”, said Lorenzino during the presentation before Congress of the 2013 budget bill.

He also questioned the unfavourable rating referred on Argentina recently made public by an international risk rating agency which “is an analysis based exclusively on non objective variables”.

The budget bill for 2013 estimates the Argentine economy will expand 4.4% with inflation at 10.8%, a trade surplus of 13 billion dollars and a tax revenue increase of 22% with the US dollar trading at an average 5.10 Pesos.

Investment is forecasted to increase 7.4% and the government finances should end the twelve months of next year with a financial surplus of 587.5 million Pesos and a primary surplus of 55.9 billion Pesos.

The administration of President Cristina Fernandez is also expected to keep appealing to Central bank reserves to meet debt commitments and financing from government institutions with surpluses.

The head of the government coalition in the Lower House of Congress, Agustín Rossi, said he expects the budget bill to be approved and sent for consideration in the Senate by the end of October.

Numbers aside, the Buenos Aires media points out the fact that Lorenzino’s optimism about the Argentine economy and its alleged immunity from the global crisis does not necessarily coincide with recent statements from President Cristina Fernandez.

Just two and a half months ago the president said that “in a world so closely inter-connected there are no possibilities of not receiving the backlash of the international crisis”.

The Argentine president made the statement in Tucuman, 9 July, Independence Day when she made a call for national unity in the context of the international crisis.

In another political rally Cristina Fernandez said that “we are not invulnerable or untouchable”, but also pointed out that in other circumstances, “a similar situation would have swept away with the country”.

Addressing the Argentine Chamber of Commerce she said that “as we look with concern what is going on in the world, we must not feel euphoric or say that we are invulnerable or untouchable, but yes that in other times, a crisis of this magnitude would have literally swept away with Argentina”.

43 comments Feed

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1 mastershakejb (#) Sep 20th, 2012 - 11:18 pm Report abuse
LOL, more jokes from stand up comedian Argentina
2 brit abroad (#) Sep 21st, 2012 - 01:13 am Report abuse
I think he means:

“when ure economy is already crap and crawling along like a cat thats lost both its hind legs, then people won't notice it when it gets worse! ”
3 bushpilot (#) Sep 21st, 2012 - 01:46 am Report abuse
If CFK's government has to acknowledge any economic deficiencies in Argentina, they will say that other countries in the world have caused this.

So much for not being affected by the world.
4 Britninja (#) Sep 21st, 2012 - 01:53 am Report abuse
I'm waiting for Turkeyneck to command that all Argies give up some internal organs for the good of the nation. How much botox does a kidney buy these days?
5 MaxAue (#) Sep 21st, 2012 - 04:37 am Report abuse
Sometimes I wonder if they really believe it themselves, as they sit and have their private meetings, or whether they know that what they are going to say to the public is utter is a classic case of “doublethink” or pure ignorance?
6 Joe Bloggs (#) Sep 21st, 2012 - 05:52 am Report abuse
I calculated last week that I owe about £60,000 in loan repayments. This figure was a little higher than what Mrs Bloggs and I would like it to be so we decided to do something about it. We've decided we're not going to pay £40,ooo of it back. We're really relieved about our decision; now our debt is only £20,000. Things are really looking up all of a sudden.

I spoke to the bank manager about this and he said we would never get another loan if we did that. He said our credit rating would be awful. I don't think he can do that to us though. We'll just tell all of the banks in the future that our credit rating is fine. That's what we'll tell our kids also. They'll never know until they grow up. If we tell them the bank is just victimising us, they'll believe us.

Chuckle chuckle.
7 Austral (#) Sep 21st, 2012 - 06:14 am Report abuse
Because the country, like his hairstyle, is stuck firmly in the 1970s and they have the boom of the 1980s to look forward to...
8 Viscount Falkland (#) Sep 21st, 2012 - 07:12 am Report abuse
Anyone know what Jorge Lanata thinks of this...?
9 Musky (#) Sep 21st, 2012 - 09:23 am Report abuse
This guy's got his head in the sand. Still, why worry about the rest of the world when this government's policies are innately more harmful. Inflation, protectionist policies, state sanctioned theft of internationally owned assets, restrictions on money movements. Dismal bunch.
10 JuanGabriel (#) Sep 21st, 2012 - 09:32 am Report abuse
Probably true that a thunderstorm is unlikely to affect a frozen turd falling at terminal velocity
11 Ken Ridge (#) Sep 21st, 2012 - 10:02 am Report abuse
“Finance minister tells Congress world crisis will not affect Argentina”

Maybe not, but the self inflicted Argentine crisis IS affecting Argentina.

“Argentine economy will expand 4.4% with inflation at 10.8%”

HAHAHAHA, I knew Argtards were good at telling porkies, but they have hit the big one this time.
12 Iron Man (#) Sep 21st, 2012 - 10:08 am Report abuse
@11 Yup - wonder what the IMF will make of that? Is that the real prediction, or the prediction of what INDEC will report the numbers as?
13 Captain Poppy (#) Sep 21st, 2012 - 10:13 am Report abuse
The IMF must have been having a snorting party. Why they ever extended argentina for 90 more days is mind boggling. Why put off the inevitable.
14 briton (#) Sep 21st, 2012 - 10:55 am Report abuse
Do you ever notice,
That whenever they shoot themselves in the foot,

The argie bloggers run for cover,
Or just

15 Austral (#) Sep 21st, 2012 - 12:04 pm Report abuse
MaxAue? (your name I mean!)
16 Ken Ridge (#) Sep 21st, 2012 - 12:07 pm Report abuse
TiT will be sat at his la Campora troll desk thinking “WTF have they left me to justify this time”
17 Captain Poppy (#) Sep 21st, 2012 - 12:50 pm Report abuse
Well of course the world economics will not effect argentina, argentina is not part of the real world. argentina created their own demise all by themselves.
18 Britworker (#) Sep 21st, 2012 - 12:52 pm Report abuse
I think you can see his nose getting bigger as he speaks!
19 Truth_Telling_Troll (#) Sep 21st, 2012 - 01:13 pm Report abuse

I'm not here to justify anyone, just put people here back in their safefy seat.

This is the truth:

So, after all those massive cuts and you still are at record levels of borrowing and public deficit?? Don't say I didn't warn you, that you were just getting started with YEARS of contraction, austerity, and poverty.

The population of the UK is barely putting up with the current austerity, wait till you get round 2, 3, and 4.

Look how austerity is working in Spain, Italy, Ireland, now France and the Netherlands... all back in recession, as is the UK. And now they need to cut more because the budget cuts stall growth which cause a bigger hole.

Don't get me wrong, I believe in austerity, but not in a recession. You become austere when times are good, so that private growth can mask cuts. But governments, no matter if it is Argentina or the UK, US, Japan ore anyone else, don't learn. They hit the gas pedal downhill and then must put on the brakes uphill.

Good times are coming for you guys... Don't worry about us. We will be OK in comparison.
20 ElaineB (#) Sep 21st, 2012 - 01:21 pm Report abuse
But what did you think about the article @19?
21 Conqueror (#) Sep 21st, 2012 - 01:33 pm Report abuse
@19 At what point did you get the idea that we might be “worried” about you? Our only “worry” is that our troops have enough ammunition. BTW “troops” includes vessels and aircraft. And “ammunition” includes bombs, missiles, torpedoes, mines, grenades.
22 Truth_Telling_Troll (#) Sep 21st, 2012 - 01:44 pm Report abuse

Then why all the long months of wasting your time here? Argentina has unilaterally disarmend, while the rest of Latin America has armed itself. We have uniterally disarmed because of internal reasons that have nothing to do with the UK.

So now that I have cleared that out for you, I welcome not seeing any of you again here, since your only “concern” has been properly lenified.
23 yankeeboy (#) Sep 21st, 2012 - 02:26 pm Report abuse
Lots of things wrong with his thinking:

They still owe the holdouts
If there is a primary surplus why take $3.5B from Bcra
Peso at 5.10 still below leak rate ( devaluation coming)
11% inflation ( sure)
Trade surplus 30% higher next year? Come on!

Good grief so many lies and no one questions him..
How embarrassing,
24 Tobers (#) Sep 21st, 2012 - 07:32 pm Report abuse
Argentine politics is stuck in the past for sure.

This dudes massive side parting and bushy burns is classic 70s Britain Union boss leader. Check out the facial raccoons of Moreno and A. Fernandez - like something from the 19th century!
25 ChrisR (#) Sep 21st, 2012 - 08:36 pm Report abuse
Well I thought it was a fantastic attempt, worthy of the accolades that will clearly come from those used to living their lives:
1) deluding themselves;
2) backing up the lamest of lame ducks;
3) rejoicing at the fortitude of TMBOA expanding her private worth at their expense;
4) seeking the truth from ingesting copious amounts of hallucinating drugs.

In other words all the Malvanistas that are so overjoyed that they are speechless for words and are therefore incapable of posting (with the obvious exception of the TIT).

You just HAVE to laugh at these pillocks.
26 KretinaK (#) Sep 21st, 2012 - 09:20 pm Report abuse
Argentina is a banana republic with a ridiculous “sudaka” president with a blown up botox face and hair extensions. She is as fake as they come, she is a low level dirty thief and the whole world knows it and that is why Argentine currency is not accepted ANYWHERE. The people in the banana republic of Argentina, the rest of the “sudaka” population, think they are important because before 1950, when fascist President Juan Domingo Perón and his cheap prostitute wife Evita came into power and stole the country's gold and money, and accepted jewelry that belonged to the Jews in eastern europe in excange for letting the Nazi criminals hide out in Argentina, Argentina was a normal and prosperous country. Ever since Peron was in power, Argentina has become a dirt bag country and the current president is a dirt bag populist banana queen that soon will destroy the country once again, like has happened so many times, Argentine dirt bags never learn. They are the same stupid “sudakas” as always. At the protest outside of the Kennedy school the day the banana botox queen gives her speech, protesters are going to stand out yelling “KRETINA LA REINA BOTOX” with bananas in their hands. And please tell the botox queen to inject a lot of botox in her neck before she gives her speech, the turkey neck is hanging down so low it looks like my scrotum!
27 DanyBerger (#) Sep 21st, 2012 - 11:57 pm Report abuse
Oh! Poor Britons they don’t know how to cook the books to hide the mess they have in their economy.

Debt, borrowing and inflation rising and they are getting poor and poor.
28 briton (#) Sep 22nd, 2012 - 10:45 am Report abuse
thats because WE unlike ARGENTINA are HONEST ...
29 DanyBerger (#) Sep 22nd, 2012 - 12:54 pm Report abuse

Ha, do you have more jokes like this?
30 Editor56619 (#) Sep 22nd, 2012 - 03:09 pm Report abuse
“Finance minister tells Congress world crisis will not affect Argentina”

What drugs is he on and may I have some please?
31 KretinaK (#) Sep 22nd, 2012 - 03:18 pm Report abuse
Thursday Sept. 27th scrotum neck is going to give a speech at Harvard University!! Argentine and pr0-democratic students have totally trashed her on the website announcing her appearance and are planning a protest - bananas in hand - when she
32 Pete Bog (#) Sep 22nd, 2012 - 06:57 pm Report abuse
Does the Argentine Airforce use the valleys in her neck to practice low level flying?
33 ChrisR (#) Sep 22nd, 2012 - 07:01 pm Report abuse
32 Pete Bog

Due to the fatal airframe failures on their remaining fast jets, the pilots have to sit in the cockpit and make jet engine noises while they are dragged along the runway by a tug.

34 briton (#) Sep 22nd, 2012 - 07:20 pm Report abuse
just like their navy,
they practise on line now,

computer games,
argentina next generation of defence.
35 Captain Poppy (#) Sep 22nd, 2012 - 08:24 pm Report abuse
#31 it's more than speaking, it's a forum and she will be asked questions......publically.
36 DanyBerger (#) Sep 23rd, 2012 - 01:36 pm Report abuse
ha ha if fireworks start I guess not Brit will make more jokes.
37 Captain Poppy (#) Sep 23rd, 2012 - 03:39 pm Report abuse
interesting read on th RG collapse.....Part duex SECOND VERSE SAME AS THE FIRST
38 briton (#) Sep 23rd, 2012 - 06:02 pm Report abuse
doctor doctor, i feel like a pair of curtains,

danny, sit down and pull your self together ..
39 Rosarino (#) Sep 23rd, 2012 - 07:21 pm Report abuse

Chilean newspaper “La Tercera”:

“JPMorgan rejects IMF warnings over Argentina in both outweighs the price of soybeans”

“Investment banks say that an increase in soybean exports will boost economic growth and Argentine dollar bonds, which outweighs the fear that the IMF punish the country for reporting a lower than actual inflation.”

And now?

This is a non serious and cheating company?
This is a recomendation for a comunist governemt? For a NORTH COREA OR MYANMAR ?

I know more than JPMorgan......

40 ChrisR (#) Sep 23rd, 2012 - 10:11 pm Report abuse
37 Captain Poppy

But I think this time will be worse than last time.

Until AG defaulted in 2002 nearly all the 'established' finance houses never thought they would do it.

Now, they are all saying it WILL happen again. So the question for me is very easy: would I invest in AG?

The answer is no I would not. I am 66 YO and would not like to leave my family with the obvious legal problems of trying to recover the money after my death.

Not that I am hoping to die of course, but how long will it take to get the investment from what is best called junk to a cash cow?

I think yankeeboy had quite a lot of property last time round and still has some left on his hands. He says this time there is no way he will get involved for the same reason as me, it could be 15 or 20 years or never to get a return on your money.

So the only way someone should consider investing is if they can afford to write the money off.
41 Captain Poppy (#) Sep 24th, 2012 - 12:23 am Report abuse point was just a sign of what is to come. BUT......while I am an American, my wife is Argentine, and eventually an American as well. Her family still lives there and I go back once if not twice a year. Call me crazy but I have always enjoyed my stays there. Of course is may have to do with her family. But I would not mind buying a flat in Recoleta if it really gets that cheap. But again my point is that fire sales refer to a collapsing economy.
42 British_Kirchnerist (#) Sep 24th, 2012 - 02:00 pm Report abuse
Hope he's right, but as the article states Cristina herself is more cautious; not what you'd expect in a dictatorship where the dictator would be the most deluded, no?!

#24 “This dudes massive side parting and bushy burns is classic 70s Britain Union boss leader”

Now I realise why I liked the look of him =)

#26 What is sudaka?

#31 That forum is worse than here for haters, but Harvard itself obviously has a more balanced view of Cristina =)
43 Captain Poppy (#) Sep 24th, 2012 - 04:24 pm Report abuse
bk you love you beloved land so much you should know more. It's a derogatory name for south americans.....think of it as “nigger”
Don't think that Harvard students think well of wannabe dictators like scrotum neck kirchner. If she shows now that she realizes she will not get advnace questions, they will hand her back her balls to place in her mouth to match her scrotum neck.

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