A Small Turn Towards Orthodoxy…but with a Twist

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A Small Turn Towards Orthodoxy…but with a Twist

First week
November 2020

The minister of Economy, Martin Guzmán, announced this morning that he has no intention of asking the Central Bank for more help for the rest of 2020. He will turn to the market to get the money to finance capital and interest maturities and up to 10% more. If he were to get more money, he would reduce the debt with the CB. This is good news and indicates that Guzman’s agenda is slowly making its way through with an administration that has had an erratic monetary and fiscal policy so far. This is a small turn towards orthodoxy but burdened by Guzman’s pace, which is much slower than what the market would like.