Santander expects the next government to make changes in the economy

MADRID "We hope that the economic cycle in Argentina do better. We trust the country to grow and that growth is more sustainable than it has been in the past. It is important to have several years of growth that benefits reach more people ", said yesterday the president of the Santander Group, Ana Botin, the only Spanish in the Forbes ranking of the 100 most powerful women in the world. The allusion to Argentina, concise and careful, came only after a question from reporters on the sidelines of the XIV Meeting Santander-Latin America, which takes place in this city.

It is understood: the attention of the most important banker in the world is focused on right now in the process of change in which he sailed to Santander as successor to his father, Emilio Botin, who died last September; in the critical economic situation in Greece, which threatened the entire European Union (see separate article), and the bank's expansion throughout Latin America, where Brazil and Mexico are the most attractive markets.

More eloquent, Alejandra Kindelan, director of studies and public policy of Santander, said: "In Argentina we are expectant with the political change that will come after the elections The [economic] diagnosis is clear and it would be good to see the will of the. new rulers to face him. For example, have a very high inflation and no access to international markets. " When it was pointed out that the government candidate would win, Kindelan said, beyond that, "Cristina Kirchner and can not recur", and that is already a change.

In making its assessment of Latin America, Ana Botin warned that countries in the region pass through complicated situations that have to be corrected, but rescued "There has been tremendous progress" over the last ten years. According to the banker, "one of the most important things in a country's progress in institutions The basis of progress is institutional, give confidence;.. This attracts foreign investment and the local business growth in the region It is still fairly uneven, but what we see is that, with its ups and downs, all countries tend to grow ".

"All countries have their cycles. The important thing is to continue with reforms to help compete better. I hope we will have a short period of adjustment", the number one of Santander, which in Latin America has 50 million esperanzó customers, who account for half of global business, they serve 85,000 employees in 7,500 offices. "We are a Latin American average bank European average", defined.

Meanwhile, Kindelan considered the period of great prosperity of 2003-2012, moderate inflation and social progress, "left behind. Latin America is going through a phase of modest growth and external factors affecting it (somewhat adverse financial conditions, less credit, just over market volatility and currency depreciation) and internal (supply constraints and less scope for expansionary policies) ".

To the economist, "the good news is that some countries are making reforms and lay the foundations for further growth in the future. A recovery from 2016. The starting point is better is expected that in recent decades the region greatly reduced rates advanced poverty and the middle class. " According to its projections, Latin America will grow 0.9% on average this year and 2% in 2016.

From this context, Kindelan identified a number of "challenges" and "margins of improvement": among the first, "high inflation rates and fiscal and current deficits, which have increased and should be set"; among the latter, "the flexibility of labor markets, reducing the informal economy, investment incentives and educational reforms".

"Greece must fulfill its commitments"

• "Greece is part of the euro, we all want to follow in the euro, but also must meet the commitments because they are the basis of the social contract we have in Europe and the world," said Ana Botin, when asked on the subject that occupies the front pages of almost all Spanish media. "I hope that we reach an agreement that addresses these two issues Europe is to follow Greece and wisely We have to do what a bank with a client.. Recalculate the payments so that the country can afford."

• Booty downplayed the damage that can cause the crisis of the "small" Greek economy. "The euro today is much stronger European banking system is stronger;.. There was a stress test and we have made significant progress that helps us cope with the volatility we are seeing Santander has no exposure to Greece is minimal, the important It is the European financial system. "