Capitanich: ‘We will prioritize productive investment over luxury goods’

CapitanichNewly appointed Cabinet Chief Jorge Capitanich, this morning spoke to reporters at the Government House and reiterated the government will «generate conditions to deepen the model,” which means to “boost economic growth and employment opportunities, increase exports and create conditions for private and public investment.”

He added “many Argentines need the State, so we need sustainable financing.”

In his first press conference as Cabinet Chief, he stated the government will seek to increase the Central Bank reserves. “We will protect our reserves,” he stressed. “The government will seek coherence among the fiscal, monetary and exchange policies,” he went on and assured the “administered flotation” system will continue although he implied the use of dollars will be restricted for unnecessary expenses like “luxurious cars.”

“It’s much more important to assign dollars to productive investment rather than to buy a luxurious car, which will only satisfy one sector of the society.”

Regarding the government’s much questioned stats office, the INDEC agency, he assured a new inflation measuring methodology is being prepared and the new index will be published in the first quarter of 2014.

“We will meet goals with a range of instruments. We won’t make pompous announcements, but instead we will give conditions of stability,” he said.

Source: Buenos Aires Herald