May 22, 2013
Argentina's current problems are 'much worse than those of 2001,' Cavallo
Former Economy Minister Domingo Cavallo assured that the country's current problems are much more serious, because nowadays "people are desperate because they want to preserve the value of their savings and the Government does not allow them to do so". He also said the cheque tax should only be applied in emergencies and also blasted the President’s speech in Harvard University.
“The current problem is much worse than that of 2001. At that time people bought dollars but in only one market, with total freedom. Thus, there was one value. No there’s no convertibility because people do not have the freedom to buy foreign currency. They are desperate because they want to preserve the value of their savings and they want to buy dollars, which the Government does not allow them to do,” Cavallo assured-
Regarding the cheque tax, the former Economy Minister said it should have been lifted after the economic crisis was over. “Since then, they have used it as permanent tax when it should have been only an emergency resource. This is a distortive tax that makes the economy less competitive.”