The trigger was the lack of transparency of the government of Carlos Salinas de Gortariwho had finished his term in December 1994. This caused important fiscal, commercial and current account deficitswhich were financed via debt, such as “Tesobones”short -term titles that were bought with Mexican pesos, but were settled in dollars.
Consulted by Scopethe federal deputy of the Institutional Revolutionary Party (PRI) Samuel Palma Césarwho too He served between 1994 and 1997he explained that the US position at that time “was of solidarity because There was the concern that Mexico fell into a deep crisis “. The previous year, both countries together with Canada had started the North American Free Trade Agreement (NAFTA).
The guarantees to return the loan
The economist Federico Glustein explained to Scope that generally “these types of programs impose conditions such as fiscal adjustment and rise in interest rates.”
In line, Palma recalled that at that time “The negotiation was on the guarantees” with which the government of Ernesto Zedillo He had to return the amount. In this regard, he mentioned that a fiscal reform should be implemented to increase the resources of the Mexican State.
In particular, the “Super VAT”which consisted of an increase in that tax from 10% to 15%. “When the VAT was raised to 15% it was clear that there would be a collection to deal with those commitments“He explained to this medium.
Pemex’s case: YPF’s mirror?
Anyway, Glustein clarified that “In the Argentine case it could mainly mean continuing with the fiscal adjustment but more flexible the exchange bands and some guarantees such as some assets such as export rights, royalties or state assets“
And he added that “the idea is not to need to use it in its entirety, as happened in Mexico after the Tequila effect although they reinsured the liquid royalties of Pemex and paid it quickly“
Similarly, a report from the Peterson Institute of International Economics (PIIE) recalled that in the case of the spher granted to Mexico it had been established that “under a complex contractual agreement, The income from Mexican oil exports would support the reimbursement of these loans“
The kick for other reforms
The PRI deputy explained to this media that this period “It was the principle of important reforms” Not only in the economic field. The judicial reform presented on December 5, 1994 and the 1996 electoral reform cited by December 5.
In relation to whether these changes were driven by the United States, he said that “They were not raised in any type of written agreement, but it was commented that it was part of the compromised agenda”.
Forward, He recommended the Government of Javier Milei “to give the greatest possible transparency to the agreements that are going to be done”because otherwise “it can generate a crisis of a political nature.” And emphasized the need for the ruling of a “public discussion of the issues that will be carried out to avoid social problems in the future.”
Source: Ambito
