The former Minister of Economy, Martin Guzmanexpressed himself against DNU 846/2024 that enables the Government to exchange debt without going through the Congresswhich will be discussed at the Chamber of Deputies this Tuesday. “It is an affront against the institutions, the State and the economy,” he said, and called for its rejection, since “it gives flexibility and freedom to the Government to build a dynamic of explosive debt.”
“Get rid of the main regulation for public debt in one fell swoop and exposes Argentine citizens to the fact that the debt burden on their shoulders can increase rapidly through public credit operations that destabilizingly raise the cost of financing the national public debt,” said the former official.
Along the same lines, he added: “Article 65 of the LAF sets limits for debt restructurings that may be annoying for some officials on duty who are too “friendly” with the demands of the financial market. These limits precisely outlined seek to protect taxpayers. of operations that would undoubtedly harm the public treasury”.
“This DNU gives the Government flexibility and freedom to build an explosive debt dynamic. This is enormously worrying in any circumstance, but it becomes even more worrying since Milei on September 15 said that the absolute priority in the budget will be the payment of the debt, and that the rest will adjust to it“he remarked.
What does the decree promoted by the Government say?
He DNU 846/2024 retouched article 11 of Decree 331/2022, which says that future exchanges, after the one carried out by Martín Guzmán for private bondholders in 2021, had to be made with species of the same currency. And the new rule establishes that, from now on, it will be indistinct: the Government will be able to receive bonds in dollars and deliver papers in pesos, or vice versa.
The modification appears as “colada” within the aforementioned DNU, which initially establishes changes in the rules of the Sustainability Guarantee Fund (FGS) of the National Social Security Administration (ANSES).
There, it is established that the FGS may have up to 70% of its portfolio in public securities, whether or not they have guarantees. Until now, I could only have 50%.
to it An article 3 is added that is supposed to allow the Secretary of Finance, Pablo Quirno, to make new debt swaps in which he can deliver bonds in one currency and receive other bonds in exchange in a currency other than market value.
In the DNU it says verbatim: “ARTICLE 11.- It is provided that future subscriptions of public debt instruments, regardless of their payment currency, “can be carried out with public debt instruments whatever their payment currency.”.
The DNU establishes that “the prices of The instruments will be set taking into account the values existing in the markets for each of the operations carried out within the framework of the approved procedural standards. by the Joint Resolution of the Ministry of Finance and the Ministry of Finance.” It clarifies that “said operations will not be covered by the provisions of article 65 of Law No. 24,156 of Financial Administration and Control Systems of the National Public Sector and its amendments.”
Source: Ambito
