NewsWhore
08-12-2008, 06:20 PM
Bernardo Vega comments in Hoy on what needs to be tackled to avoid serious balance of payment problems and the depreciation of the peso. Vega concludes a devaluation will be avoided only if the government can achieve a budgetary surplus. He blamed the strong budgetary deficit on the re-election campaign overspending. He called for transparency. He complained that the government is keeping a secret the deficit numbers, that previously were published on the Ministry of Hacienda website.
Vega said the government is taking a big risk by counting on a continued decline in imported oil and food prices. He said that if that does not happen, the budgetary deficit would have to be met by the government printing money. He explained the country is before a situation of rising costs and volume of imports, while foreign exchange receipts have not kept the same pace.
More... (http://www.dr1.com/index.html#7)
Vega said the government is taking a big risk by counting on a continued decline in imported oil and food prices. He said that if that does not happen, the budgetary deficit would have to be met by the government printing money. He explained the country is before a situation of rising costs and volume of imports, while foreign exchange receipts have not kept the same pace.
More... (http://www.dr1.com/index.html#7)