In parallel, the former minister of macrismo, Hernan Lacunza, He said he did not want it to explode “neither now nor next year nor ever” because when that happens “the poor suffer”, but he said that “to avoid explosions you have to stop inflating, because otherwise one day it will be too late. And That is the exclusive objective of the statement of Together for Change, to call for responsibility and public awareness that inconsistencies are accumulating, and for the authorities that this is not going to end well.”
Guzman, who left the government in the middle of last year after holding public discussions with Vice President Cristina Fernández de Kirchner, defended his management regarding the reconstruction of the public debt market in pesos and questioned the leadership of Together for Change, and its ministers lacunza and Nicholas Dujovne, for the situation in which they left the country in December 2019.
“In Argentina there was no credit in any currency. This was a consequence of the indebtedness policy of the JxC government between 2015-2019, which ended with an unsustainable debt in USD and, in pesos, in default. There should be no discussion in this period”, Guzmán affirmed and considered as “titanic” the reconstruction of credit in pesos “in the midst of a Pandemic, where the State had to take care of life, work and production (…) All political spaces should take care of credit in pesos”.
In addition, he wondered: “When JxC criticizes the fiscal deficit in the situation from which we come, are they saying that in the pandemic they should have spent less? In what? In the ATP and the IFE that prevented businesses and factories from closing and people from being left without work and without income?. It should be remembered that former President Mauricio Macri expressed on different occasions his rejection of the active response of the State in the pandemic.
The former minister of the Frente de Todos also accused JxC of wanting “that the debt in pesos cannot be refinanced, as happened in 2019 when they governed” but said that “they are avoiding the diagnosis” since “now the market structure is different”.
Following the review of debt management during the JxC government, Guzmán criticized the liberal position of allowing the free entry of speculative capital “that had no interest in local development”with which, when those capitals left “they left us with less reserves, a devaluation, more inflation and without credit.”
In return, the economist said that “today the holders of debt in $ are local savers, companies that generate jobs and pay salaries, banks that keep your deposits, insurance companies that protect your home, your health and your car. All of them want, and we want, that this market does not break, but rather that it grows”.
In closing, he criticized the opposition coalition for “wanting to give lessons on debt as if his 4 years had never existed in which he chose not to restructure the unsustainable debt in USD by paying it off with a record loan of IMF who mortgaged our future, and left the debt in $ in default. That was unsustainable.”
“We have a lot of work ahead of us to build a stable Argentina with a future. For this, the ways of building power and doing politics should not undermine trust, but rather generate it. Misrepresenting and omitting cannot be your campaign. Let’s live up to the country that we can be”, concluded Guzmán.
Hernan Lacunza
NA
The statement of Together for Change
The National Board of Together for Change issued a statement this week through which he launched severe criticism of the Government for the public debt and denounced a “time bomb” for whoever takes office on December 10.
The national leadership expressed itself against the use of “financial instruments in pesos, adjusted in dollars with interest rates impossible to pay, or in dollars at usurious rates.”
“With this, the National Government does nothing more than speculate with leaving a time bomb for the next Government”, affirmed the referents of the opposition.
“Despite the government’s denial, this has placed the country in a delicate scenario of financial fragility that raises the risk of a chaotic exit. In short, a situation that, far from solving the problems, irresponsibly tries to shift its impact to the day after the elections”, indicated the JxC National Board.
GABRIEL RUBINSTEIN.png
Rubinstein’s response to JxC
The Vice Minister of Economy, Gabriel Rubenstein, remarked that the public debt reaches 8% of the Gross Domestic Product and requires “only 0.2% of the GDP of fiscal effort in order not to grow”, for which he assured that “it is not unsustainable”.
Through the social network Twitter, Rubinstein once again responded to a group of economists who criticized the current administration for managing the debt.
“Dear colleagues, how can a debt of 8% of GDP, which requires only 0.2% of GDP of fiscal effort in order not to grow, be classified as unsustainable? “And if so that the debt does not grow more, we all seek, as a state policy, to approve a budget without a primary fiscal deficit?” the official said.
Rubinstein argued that unlike the 2016/2019 period, “in which debt was mainly issued in dollars, today the debt market in pesos is the main source of financing for the Treasury”, while the assistance of the Central Bank (BCRA) to the Treasury “represented only 20% of the financing in pesos, highlighting that during the second half of 2022 partial cancellations of the debt in pesos with the BCRA were made.”
Source: Ambito
