On December 2, 2001, the then Economy Minister Domingo Cavallo ruled that savers could only withdraw up to $ 250 from their bank accounts.
A few days later, that measure caused a dramatic social outbreak, which put an end to the Convertibility, the plan that Cavallo had also designed.
“The corralito only put limitations on cash and was not an exchange control. It also limited transfers abroad, except for foreign trade or the normal movement of capital. The banking system was with low liquidity and, consequently, it was necessary to reestablish it, “said Liendo, a lawyer specializing in debt restructuring.
Speaking to the program “Someone has to say it”, which is broadcast on Radio Rivadavia, the former official commented “the whole movement (that promoted the launch of the corralito) had been generated by a great distrust fueled by institutional facts”, which led to the resignation of former president Fernando De la Rúa.
Liendo recalled that at that time: “The country was in a delicate financial situation, due to a very important run. In the second semester of 2001, some US $ 16,000 million came out of the banks and the entities were very worried about running out of liquidity.”
And he pointed out that Argentina “was also in a debt restructuring, which was carried out in two phases: one with local creditors, especially the banks, which ended on December 14 of that year; maturities were postponed for three years and interest rates were lowered by 30%. “
“The other phase was with international bondholders. Cavallo followed the evolution of deposits and asked me to help him with the debt restructuring, which was very successful,” he added.
Finally, Liendo questioned the “disaster” that occurred during the government of Eduardo Duhalde, which put an end to Convertibility.
Source From: Ambito
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