Universidad Torcuato

Does is really inflation in Argentina? Really very few can answer this question accurately. I tend to say that it is above 15% but not very far from that level. For the common people, the rate of inflation is quite beyond my 15% and reflected it in the survey on inflation expectations that relieves the Universidad Torcuato Di Tella, in which estimated an average inflation rate expected 29.5 per cent for the next 12 months. To some extent, the Government of Argentina through their actions of economic policy recognizes that the situation is rather complex. That is why earlier this year, launched a debt swap that allowed him to the Argentina reduce the obligations for the coming years and thus remove pressure to the financial program. This measure such good results has given the Government and which is intended to be replicated again according to El Cronista Comercial, is so next week will propose an Exchange volunteer Boden 2012 which has the attraction of a payment in advance the coupon of capital that is due the August 3 involves delivery of US $2.3 billion (which in reality does not represent a great improvement) but redeem maturities which expire in 2010 and 2012 and involving $7 billion for new longer term bonds. Surely the Exchange won't much volunteer since 80% of the bonds is in the hands of institutional investors who will receive an official call to invite them to participate.

The need to clear the financial programme in the short term is a consequence of the impossibility of the Argentina's access to international debt markets. That is why before the aggravation of the problems in the sources of income, what better situation which reduce the obligations. While I understand that it is a good alternative the delaying payment of the obligations, the problem for the Argentina is that many elements that can ensure a strong fiscal surplus recomposition (something increasingly less likely considering the indiscipline in spending by the Government), or there are that the country can return to accessing international markets, so it is He would be postponing the problem and generating higher pressures in the future.