(Archived Content)
FROM THE OFFICE OF PUBLIC AFFAIRS
JS-1451
I am very pleased to be here in Argentina today. We value our relations with Argentina, and its economy is important to the region. There is no better way to understand what is going on in a country than to come and see it in person. During this visit, I have had the opportunity to speak not only with government officials, but also with members of Congress, private economists, businesspeople, bankers, and even university graduate students. I am looking forward to meeting with President Kirchner later this afternoon.
Argentina’s economic recovery is impressive. Businesses—particularly small and medium businesses—are once again investing and creating new jobs. As a result, poverty has begun to fall. Inflation has been dramatically reduced. These positive developments are a result of sound fiscal and monetary policies: improvements in tax administration, fiscal discipline, and careful monetary management have improved confidence, and lowered interest rates. The United States is proud to have supported Argentina’s efforts—first under the transitional IMF program launched in January 2003, and now under the three-year IMF program launched in September 2003.
Much of the discussion focused on the challenges confronting Argentina as it seeks to turn recovery into long-term growth and dramatic poverty reduction. I had the opportunity to discuss issues that are vital to Argentina’s economic future, including in the fiscal, monetary, banking, regulatory areas. Many meeting participants emphasized the importance of policies to address not only short-term energy needs, but also to provide the right incentives for the investment needed to meet Argentina’s energy needs in the future. In the fiscal area, I noted the importance of federal-provincial fiscal reforms needed to lock in the improvements in government finances and fix the weaknesses of the past. I hope that members of Congress, provincial leaders, and others work closely with the government on these important reforms.
I was pleased to hear a report on the government’s recent discussions with private creditors on the issue of Argentina’s debt restructuring. A successful debt restructuring is fundamental for inducing investors at home and abroad to risk their capital in this country. Private investment will create the long-term economic growth that is the key to raising living standards for all of Argentina’s citizens. I look forward to negotiations between Argentina and its private creditors with the give-and-take needed to encourage creditors to participate in the debt exchange. A successful restructuring will put the legacy of Argentina’s crisis permanently in the past.