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Montevideo, February 23rd 2024 - 10:36 UTC



Argentina needs an “urgent change of course” and better relations with financial markets

Wednesday, October 8th 2014 - 07:51 UTC
Full article 44 comments
“Humbly speaking if I was in Argentina's shoes, that would be my priority”, said economist De la Torre . “Humbly speaking if I was in Argentina's shoes, that would be my priority”, said economist De la Torre .

The Argentine economy needs an urgent change of course which would have the effect of reestablishing normal relations with the financial market, a crucial step to open a maneuvering space in an ever more complex environment, suggested Augusto de la Torre, World Bank chief economist for Latin America.

Without giving more details De la Torre simply said that “humbly speaking if I was in Argentina's shoes, that would be my priority”.

However De la Torre emphasized that access to financing is convenient not only for 'oxygen', but because “as long as there is not clarity regarding normalizing relations and access to financing”, expectations can lead people to adopt “defensive positions that will only further complicate things”.

“If there are no normal relations with financial markets it's only normal that people will take refuge in the US dollar or try to take their money out of the country, and that will really complicate things”.

Speaking during a press conference on Tuesday in Washington in the framework of the annual assemblies of the IMF and the World Bank, De la Torre also acknowledged inflationary pressures and the option of devaluating a currency, but “it's useless if that move immediately is reflected in prices”.

The economist also regretted the 'tribulation' in which Argentina is immersed because of its long dispute with the speculative funds, which influence the country's access to money markets.

Likewise De la Torre revealed that there is no date 'yet' for the disbursement of World Bank loans to Argentina, but “we are working on that” as part of the financial strategy agreed and approved a few weeks ago.

Top Comments

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  • reality check

    There is no date for disbursement of WB funds for Argentina.

    Says it all really.

    Oct 08th, 2014 - 08:05 am 0
  • Conqueror

    I expect 'proper' countries will continue to block loans to argieland. Nobody you should listen to this De la Torre clown. For him, it's all about 'his' economic system.

    If argieland quit wasting everybodies time and PAID its debts........!

    Oct 08th, 2014 - 08:40 am 0
  • reality check

    He knows who he is “humbly” dealing with though.

    It's not what you say to KFC, it's how you say it!”

    Oct 08th, 2014 - 08:50 am 0
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