“Unfortunately there are no 1,000 peso bills. The Casa de la Moneda is issuing everything that can and is not enough. They have to take out treasured 100-peso bills to reach the currency. Everyone has doubled or tripled the amount of cash they had. We express this to the Central Bank but they cannot cope“, he pointed Jorge Brito, president of the Macro desk in statements to Radio Rivadavia.
– –
“We would have to take out a banknote of a higher denomination, of 5,000. But, when we have to pay the bonuses in December, there will be a serious problem, “added the banker, in relation to a project that the Government analyzed but later ruled out, according to the president’s words. Alberto Fernández.
– –
Brito explained that some bottlenecks may occur in banks as a result of the payment of the Emegencia Family Income (IFE), the $ 10,000 bond that Anses pays to families without other income to face quarantine. She recalled that each IFE payment represents almost 9 million beneficiaries and that this movement “It is concentrated in national banks and generates a very important recharge in some banks. So there are some problems. “.
– –
“Foreign banks do not receive payment from the IFE and are comfortable with uncrowded branches. In our case, we have paid the IFE to more than a million people. That generates a lot of people and out there some of our clients are bothered. But we have to understand that everyone, given the emergency situation, we have to collaborate, “he said.
– –
Brito highlighted the strength of Argentine banks and rejected the idea that the financial system was “the only winner of all these years.” In this regard, he pointed out: “What we have done was capitalize the banks. The Central Bank issued a regulation providing that no shareholder can take the silver. It is important to understand it because we remember that in the 2002 crisis a lot of things had to be addressed and the financial system. There were more than five who left the keys to their banks at the door of the Central Bank”.
– –
Regarding the economic situation generated by the coronavirus pandemic, he noted: “Clearly, the economy is bad because we have decided to try to have the fewest number of sick people, and therefore the dead. In the AMBA there are a lot of people in quarantine, and they cannot go to work. There are many people who are having a very hard time. ”
– –
Like other businessmen, Brito asked that health precautions have some flexibility to revive economic activity: “It seems important to me that, beyond what the president’s health team, which is advising him very well, says, we begin to think about how we do so that people can start working, without putting society at risk. You have to think how to get out of this. Is there a way out? I would say yes.
– –
Debt renegotiation
– –
Finally, the head of Banco Macro called for a solution to the debt problem and was optimistic: “Yesterday (on Monday) an important step was taken in making the last proposal to pay the debt. I am not saying that it has been solved, but a very important step was taken so that Argentina begins to travel a path that returns us to the culture of work. This is a great effort that the country is making to grow again.”
– –
“There is still no certainty. The offer made by Argentina is the maximum that can be paid. We have to think about how we start: Argentina recognizing 39 (dollars per 100 of nominal debt) and BlackRock asking for 75, it was negotiated and we have reached 53 and a half. It is a success for both parties. We cannot fail to recognize that it is the maximum that Argentina can pay. From my point of view, without an agreement, we did not go out, “he said.
– –
“All private companies have credits taken abroad. You have to understand how important the cost of credit is. When the cost in a country is 3% in dollars, producing is easy; when it is 13 or 14% in dollars, it is impossible. I think that once the debt is fixed, the cost of capital in Argentina will go down a lot. So the agreement is essential“Brito concluded.
– –
