Argentines and foreign investors are gaining more confidence that a strong recovery is possible soon

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President Javier Milei expressed that the Government has various reasons for optimism. He highlighted positive survey data despite the severe economic recession and asserted that Argentina will experience a robust economic recovery once the stocks are opened.

In addition, the President stated that although 70% of Argentines acknowledge their current struggles, there is an essential factor to consider. He mentioned that at the beginning of their mandate in December, only 20% of Argentines believed that their country would see improvement in the next six months. This number increased to 30% in January and 42% in February. It stands at 50%, indicating that half of the population believes improvement is on the horizon. According to the President, these findings align with the ruling party’s surveys and opinion polls analysis, where the term “hope” appears most frequently.

The President also discussed releasing stocks once the Central Bank’s balance sheet is cleared and all liabilities are compensated. Although no specific details were provided, he tentatively proposed the middle of the year as a probable date. He emphasized that this timeline depends on individuals’ willingness to participate in security exchanges, as calculated by the IMF.

During his remarks, he stated that numerous analysts predict a ‘V’- shaped recovery. He also noted that the country’s risk stood at around 2,900 basis points upon our arrival, whereas today, it has decreased to 1,400. This equates to an increase in bond value from 18 to 54 dollars. Furthermore, he emphasized that once the stocks can be opened and all restrictions on the exchange market lifted, the Argentine economy is expected to experience a significant expansion.

However, he clarified that he cannot take any risks. He stressed that this is not simply an academic paper that can be corrected and amended. Rather, any mistakes made in this situation would directly impact the lives of 47 million individuals. Therefore, it is only natural for him to exercise caution and have a higher level of risk aversion than usual. He added that he would have already taken action if this were solely personal.

Megaprisons

In another segment of the interview, Javier Milei confirmed that one of the future initiatives proposed by the government is the construction of mega prisons, similar to those implemented by Nayib Bukele in El Salvador. This is a response to the rising issue of drug-related crime in the country. Several weeks ago, the Minister of Security, Patricia Bullrich, met with the Salvadoran president to discuss this matter. He said, “We are considering building prisons with a capacity of 5,000 to 6,000 inmates.”

He elaborated on the concept, stating that many prisons were designed and constructed during different periods of history. However, with the increasing population, these facilities have become urbanized areas. To address this issue, the government plans to sell these prisons to real estate companies. This will allow for the financing and construction of new, more secure, and better-equipped prisons far from urban areas. As a result, inmates will benefit from improved living conditions without additional government costs.

When inquired about the construction implementation, the individual stated that Congress should have no obstacles for its approval. “I would need to observe how it will be executed, but fundamentally, it should not face resistance. It appears that society recognizes that those who make these decisions are responsible for them and that these decisions must be effective.”

International Trip to Ukraine


Subsequently, Milei elaborated on his upcoming excursions as President, including visits to various European countries and the United States. He particularly highlighted his support for Ukraine amid its conflict with Russia.

“We are expected to travel for the G7 meeting, for which I am grateful to President [Giorgia] Meloni for the invitation. In addition, I am scheduled to attend an event in Madrid to receive the Juan de Mariana Award. I will head to Germany to receive the Hayek Medal of Honor. On this same journey, I intend to hold meetings with [Olaf] Scholz in Germany and [Emmanuel] Macron in France, and it is also my aspiration to pay a visit to [Volodimir] Zelensky in Ukraine,” he clarified.

In that regard, he did not exclude the possibility of Argentina providing military assistance to Ukraine more than two years after the war. He stated, “The governments are in communication. Our Minister of Defense, Luis Petri, is in contact with Ukrainian authorities, and we will offer any feasible assistance to aid them. A forum aimed at defending the freedom of Ukraine is scheduled to take place in Latin America. President Zelensky has requested that I host the event here, and I have accepted. I have also received invitations to participate in other forums advocating for the defence of Ukraine, which I intend to attend.”

Furthermore, he announced his upcoming trip to Miami, United States, where he and his sister will be honoured with the Jewish community’s “Ambassador of Light” award. He expressed his pride in receiving this recognition for their contributions to defending freedom and supporting Jewish values.

Source: Part of an interview with CNN

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