Within the omnibus law, it is promoted to repeal a key article of the Law Strengthening the Sustainability of Public Debt No. 27,612. The former Minister of Economy, Martín Guzmán, came to the crossroads of this regulation.
Martín Guzmán questioned Javier Milei for wanting to take on foreign debt without the approval of Congress
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The National Government sent this day to the National Congress an “omnibus law” in which it is promoted to repeal a key article of the Law Strengthening the Sustainability of Public Debt No. 27,612 and, besides, seeks to modify the Financial Administration Law. After learning this news, the former Minister of Economy, Martin Guzmancame to the crossroads of this decision and forcefully questioned the president.
“Wasn’t taking debt immoral? If you don’t want to increase the debt, why would you open the door so that external public debt does not have to go through Congress?since public debt restructurings increase debt instead of reducing it, as with Sturzenegger’s Meganexchange in 2001“, posted the former official from his social networks.
And continued: “Are you aware that you are opening the door to new historic looting of taxpayers through public debt management? This is what your Omnibus law does at the level of debt.”
In this regard, he explained that the omnibus law seeks to modify the Financial Administration Lawwhich stipulates that a public debt restructuring must result in an improvement in the amounts, terms and/or interests of the original operations (and which has been interpreted as requiring improvements in two of those three dimensions). “It would no longer be necessary for this to happen”he warned.
“I mean, It would be legal for a debt restructuring to involve an increase rather than a reduction in the debt burden, if those are the prevailing financial market conditions (like in 2001)”, he described.
The omnibus law also seeks modify article 1 of the Law to Strengthen the Sustainability of Public Debtapproved almost unanimously by both chambers of the National Congress in 2021, which requires that indebtedness in the form of public securities in foreign currency under foreign law must be authorized by the National Congress.
“The purpose of that Law is that Never again can it happen that a government in power brutally increases the external debt with private creditors or the IMF, with consequences for several generations, as happened in 2016-2019. Javier Milei, your law would make it possible again,” he concluded. Guzman.
Source: Ambito
