In the first place, Guzmán considered that “It was very important that there be a worldwide review of what this loan was” and said that the results of the analysis “has surprised many.” The statement, released in the evening, concludes that “the program did not meet its objectives” and ensures that the lack of capital controls and a debt restructuring, together with “together with the flight of capital from residents, exerted a pressure on the exchange rate “.
In that sense, he said that “The IMF recognized that the silver was used to pay off unsustainable debt to private creditors. It was basically a bailout for creditors.”, he said and added that the focus was also on that “It was used to finance the formation of external assets”, that is, capital flight.
The numbers are very clear, said Guzmán: “Around US $ 21 billion went to pay unsustainable debt, and US $ 24 billion to finance capital outflow. These numbers are really huge. It will take a long time to solve the damage it did. Together for Change “.
However, the minister considered that “more self-criticism is needed” on the part of the directors of the organization. “The statement says that the directors consider that there should have been measures that could potentially have helped,” Guzmán said, such as those mentioned above, “but it also clarifies that there are directors who think differently … some countries in the IMF who think differently. That shows you the complexity of the political scene and the damage done to a country, in this case to Argentina, when it is exposed to that. “
“We believe the fund needs to do a review. A serious assessment is needed as to whether or not the statute standards were met. A loan should not be used to finance capital outflows and in the numbers that is clear that it happened in Argentina “, he emphasized. “How could they think that Argentina was going to be able to pay off such a debt?”he told the ex-Macrista officials who negotiated the loan. “This was the responsibility of JxC. This is how they left Argentina. They mortgaged the future of our people, our families and friends,” he lashed out.
A salient point of the IMF statement has to do with the analysis carried out on the multi-causality of inflation in Argentina. In this regard, Guzmán considered that the body itself recognizes that it should have been approached differently. “The IMF itself says that it has multiple causes and that it could not be attacked like JxC with the interest rate and monetary policy. That was a disaster. Today the Fund is showing a greater understanding,” he remarked.
The document published tonight by the IMF indicates that “despite the exchange interventions” implemented by the Government “Beyond the provisions of the program, the exchange rate continued to depreciate, increasing inflation and the peso value of public debt, and weakening real income, especially of the poor.” In this regard, the Minister of Economy was forceful in stating that “the IMF itself says that the JxC program failed because it deepened the recession, it did not help lower inflation, because it did not help protect the most vulnerable sectors of Argentina, the Poverty increased and inequality increased. What is happening today? Production is growing. Investment is growing. The most important social problems are being attacked. “
Regarding the negotiations to restructure the debt and reach a new 10-year agreement, he considered that “the debt that was taken on is so great that within the frameworks available to the IMF today, this problem cannot be solved in a single step “, in a clear response to the statements of the former president Mauricio Macri, who pointed out that had he won in 2019 he would have renegotiated the loan “in five minutes.”
“An agreement will help us clear the financial horizon. But reassuring Argentina will take time. Not less than a decade,” he said and concluded that although an agreement can be reached “payments with the IMF have a concentration so that we are going to have to continue taking steps. That is why we are going to include a clause that if the IMF has a better type of loan in the future, that will allow the Argentine debt to be transferred to a new program. “
Source From: Ambito
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