However, yesterday was overtaken by the President who stressed that it was observed an inter-annual growth of 13.9%. A little cleaning this data (not the recognized by Indec) actual inflation whereas, in Argentina stays above 15% and taking into account that the levying of the month of March 2008 did not contain a good percentage of revenue by social security, the data can do nothing more than generate concern while Cristina Fernandez de Kirchner says: All are surprised at the strength that we are demonstrating. To get an idea of the stagnation observed by the tax revenue in the month of April, just remember that in the month of March it had experienced a growth of 23%. Several of the problems facing the Argentine economy were generated from the inside by errors of economic policy. By what can be seen, is still accumulating new errors in decisions on economic policy will continue impacting the economy. Without doubt, if the Government decides to have recourse to the Argentina to finance, banking system could be exacerbating the adverse situation faced by the private sector. It is a displacement effect (crowding out) private credit, which will further limit access to credit for private may result. Perhaps one might think that this will not happen since the Government pretend to become part of the liquidity, but the entities pretend to recover part of the liquidity (and especially if the Government takes such action that increases the risks in the economy), by reducing its private loan portfolio.
Thus, less access to credit can put a sector of companies in difficulties increasing the risk of bankruptcy. If you want to do a review of what has been so far Fernandez Cristina de Kirchner managing front of the Argentine presidency will observe as the decisions that have been taken around this time (mobile retentions, nationalization of the system of AFJP, continuity of fiscal indiscipline, among the most prominent), have not Another thing that further tighten the internal context (which, it must be recognized, suffered with force the external shock), forcing them to make increasingly risky decisions. Do you realize in time for this to change? Latinforme. com is the main source of financial information and independent opinion about the Latin American markets and worldwide from a Latin American perspective. From our offices in Buenos Aires, Argentina, we bring you the latest news and alerts to help you to get profits no matter the direction taken by the market.