Economy Minister Luis Caputo attempted to soothe markets after Congress sent the omnibus bill back to commissions, saying that the government’s economic program has not changed despite the setback and that they remain committed to achieving fiscal balance. 

In pre-market trading, sovereign bonds were down 4%, while Argentine companies’ stocks were down by 7% on Wall Street.  

“The biggest part of our program for fiscal stabilization was not included in the bill,” Caputo said in an interview with LN+ television channel on Wednesday morning. The government withdrew the fiscal chapter of the bill in late January. 

He added that they knew that what happened Tuesday was always a possibility. “We know we are fighting against a group of legislators, the caste, who don’t want any change in Argentina.”

The minister stated that they are already seeing results, saying that the deficit was down 0.2% and that the government had reached fiscal balance in January without any law in place. He also claimed that inflation was coming down. 

“Most economists predicted 30% in December and January and 20% in February. But December was actually 25%, January will be around 20%, and February will be even lower,” he said. Caputo also said that they are close to reaching a deal with the opposition regarding how to calculate funds for pensioners.

“The bill was meant for Argentines — to deregulate and take the foot of the state off of people’s heads,” Caputo said, adding that politicians need to understand that this is the change that people voted for.