Thursday, October 9, 2014
Kicillof repeats call for more 'vulture' controls
Economy minister Axel Kicillof has thanked members of the G24 economic group for their support in Argentina's conflict in the New York courts with holdout investors, and reiterated the need for further controls against so-called 'vulture funds'.
"Beyond that solidarity, it is true that the issue represents a problem for all countries due to its systemic consequences," the minister pointed out at a meeting of the group in the United States today.
"If the criteria applied by the New York court is imposed it is impossible to carry out a debt restructuring and speculative behaviours ended up dominating."
Kicillof also used his address to highlight the importance of government and state intervention in helping countries out of economic crisis.
"There is an enormous consensus around the weakness of the world economy's recovery, and the concern over the unequal recovery between countries," he explained from Washington.
For Kicillof, it is evident that "monetary measures can be insufficient" to ease such crises, meaning that "fiscal policy plays a fundamental role to get out of a crisis."
"The state can make up for the weakness of private demand, in particular in relation to investment in infrastructure," he pointed out, as he addressed ministers of the G24 group alongside new Central Bank chief Alejandro Vanoli.
Earlier, the Economy minister had questioned data from the International Monetary Fund (IMF) that suggests Argentina will continue in recession, dismissing the numbers as overly pessimistic compared to forecasts from the government.
The official confirmed predictions of 0.5 percent growth for the end of 2014, compared to a retraction of 1.7 percent released by the world monetary authority, in a presentation to a meeting on the IMF's Financial Committee later published on the organism's website.
Kicillof maintained in his address that growth in the Argentine economy for the first half of 2014 compared to the same period the previous year showed positive signals.
"These figures are closer to Argentina's GDP projection in 2014 for [a growth of] 0.5 percent than for a negative figure of 1.7 percent," he stated, criticising the IMF's calculations.
The minister did recognise that "right now we face a deceleration in growth, principally due to a contraction in activity from our principal commercial partners."
"However, taking into account the growth rates in GDP for the first two quarters of the year (0.3 and 0%) a projection of -1.7% could only be validated with two quarters of contraction greater than 3%," he pointed out.
Kicillof highlighted that the Cristina Fernández de Kirchner administration has been applying "expansive fiscal policies since the start of the year, that alongside salary increases lead us to think that the IMF projection for the rest of the year is overly pessimistic."
"Beyond that solidarity, it is true that the issue represents a problem for all countries due to its systemic consequences," the minister pointed out at a meeting of the group in the United States today.
"If the criteria applied by the New York court is imposed it is impossible to carry out a debt restructuring and speculative behaviours ended up dominating."
Kicillof also used his address to highlight the importance of government and state intervention in helping countries out of economic crisis.
"There is an enormous consensus around the weakness of the world economy's recovery, and the concern over the unequal recovery between countries," he explained from Washington.
For Kicillof, it is evident that "monetary measures can be insufficient" to ease such crises, meaning that "fiscal policy plays a fundamental role to get out of a crisis."
"The state can make up for the weakness of private demand, in particular in relation to investment in infrastructure," he pointed out, as he addressed ministers of the G24 group alongside new Central Bank chief Alejandro Vanoli.
Earlier, the Economy minister had questioned data from the International Monetary Fund (IMF) that suggests Argentina will continue in recession, dismissing the numbers as overly pessimistic compared to forecasts from the government.
The official confirmed predictions of 0.5 percent growth for the end of 2014, compared to a retraction of 1.7 percent released by the world monetary authority, in a presentation to a meeting on the IMF's Financial Committee later published on the organism's website.
Kicillof maintained in his address that growth in the Argentine economy for the first half of 2014 compared to the same period the previous year showed positive signals.
"These figures are closer to Argentina's GDP projection in 2014 for [a growth of] 0.5 percent than for a negative figure of 1.7 percent," he stated, criticising the IMF's calculations.
The minister did recognise that "right now we face a deceleration in growth, principally due to a contraction in activity from our principal commercial partners."
"However, taking into account the growth rates in GDP for the first two quarters of the year (0.3 and 0%) a projection of -1.7% could only be validated with two quarters of contraction greater than 3%," he pointed out.
Kicillof highlighted that the Cristina Fernández de Kirchner administration has been applying "expansive fiscal policies since the start of the year, that alongside salary increases lead us to think that the IMF projection for the rest of the year is overly pessimistic."
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