In a press conference, the spokesman justified a package of deep cuts and devaluation announced the day before by the Minister of Economy Luis Caputo and pointed out that the reduction of transport and energy subsidies will start to take effect as from January 1st.

These are necessary actions to avoid catastrophe, hyperinflation and an increase in poverty. Our most urgent goal is the zero deficit and the balance of public accounts, he affirmed and avoided answering a question about possible steps to improve the purchasing power of the population.

We should not be afraid of the truth. We are not going to lie. The measures are not the ones we dreamed of or thought of. We would have loved for the times to be different, he said.

The Central Bank is no longer our friend and will not finance a single peso from the treasury, he added.

He also indicated that “the purpose of the measures is to attack part of the public expenditure and the improvement of tax revenues. For this, we approved the increase in the country tax, the withholdings, the modification in personal property, the moratorium and the general laundering of taxes”.

In terms of expenditures, there will be a 0,4% reduction of the Gross Domestic Product in the retirement and pension scheme, transfers to the provinces will be practically eliminated, public works will decrease, we will put an end to “the political business” of social plans and the amount allocated to the functioning of the State will decrease, he pointed out.

He also explained that “the monetary issue to finance the treasury will be ended and the new exchange rate (1 dollar for 800 pesos) points to a correction in the incentives for those who export and a readjustment that leads to a value in line with reality”.

The decision is to prevent the patient from dying and we are going to achieve it. Argentina is going to change and it will be very different. This is only the curtain of what is to come, he said.

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