MercoPress. South Atlantic News Agency
Hard times ahead for Argentina's Banco Nación president
Bank directors and employees alike turn their backs on González Fraga Argentina's state-run Banco Nación President Javier González Fraga admitted borrowing from abroad is a possibility to face the current liquidity shortage, it was reported.
According to the newspaper La Nación, the Banco Nación situation worsened in October due to the 44% reserve requirement plus the volatility of public funds deposits, commonly referred to as the treasury coffers.
The report also stated that the bank would go out for more stable deposits than those of government agencies and added that although technically universities or municipalities are also state entities, they are far less mercurial.
Bank Director Alicia Ines Caballero resigned a week ago over disagreements with González Fraga's managerial policies and two other directors may follow suit, the report pointed out.
The Argentine Banking Association has been warning for three months now that the Banco Nación “will decapitalize” next year because Article 118 of the national budget provides for a transfer of $ 15,000 million (around US $ 400 million) to the National Treasury.
Banco Nación workers have protested last week in demand of overdue wage increases agreed upon as they blamed González Fraga for the “economic setback that led to the bank to not have funds to deal with the salary recomposition.”
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Nov 28th, 2018 - 10:18 am 0BOOM & BUST: Robbing ourselves to glory, aren't we?
https://www.thebalance.com/boom-and-bust-cycle-causes-and-history-3305803
Poor Gonzalez Fraga. He is the genius who, at the start of the current government said president Macri was building a sustainable economy -- only, its fruits would take a while to be enjoyed by the working class.
Nov 27th, 2018 - 07:30 pm -1Fraga said the working class' increased consumption under Kirchnerism had been an “illusion.”
“We are coming from 12 years during which things were done badly,” he said.
“You made believe average employees that their wages could be used to buy cell phones, plasma TVs, cars, motorbikes and trips abroad.”
Fraga also said an out-of-control consumption by the middle class during the governments of Nestor and Cristina Kirchner occurred under a “bubble of growth” feeding “populist projects”
I'll take that any time.
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