Martín Guzmán He spoke on his social networks on the DNU that approves the new agreement with the International Monetary Fund (IMF), negotiated by the current management. He questioned “the need and urgency” of the measure and revealed the true reason why the government seeks to avoid the debate in Congress.
In its publication, the former minister explained the impact that the indebtedness with the IMF on the economy of the country and its population: “The indebtedness with the IMF affect how we live for decades. Today the country continues to pay the consequences of brutal indebtedness of 45 billion USD with the 2018 IMF that Caputo used to burst in the exchange market, giving very advantageous exit to the speculative capitals that had built fortunes with the interest rate policy that Sturzenegger implemented when the business ended.
“That is why it is so important that a government on duty has to be authorized by Congress via a special law to borrow with the IMF (Law 27,612, Art. 2). That the Congress see the conditions and uses that are intended to give to indebtedness, and decide if that debt will serve those who represent: our people and our provinces “and added Guzmán: “The real reason why Caputo and Milei want to skip Congress with a DNU is not the urgency. It is very simple to understand this: When there is an agreement between the government and the IMF staff for a loan, about 3 weeks pass until the IMF directory approves it. How would there be an urgency to avoid Congress but not to the IMF directory, if they take the same time in defining the approval or rejection of the loan?
“To understand the real reason, you need to listen to Caputo’s confession: The government does not have sufficient political support in the Senate to take more external debt to burst it again in the exchange market“The economist said.
“Broad political support is precisely one of the conditions that the IMF has to consider as a compliment to be able to grant a loan of the magnitude that the Argentine government is asking (exceptional access criteria #4). That is, if he lends the country with Caputo and Milei, avoiding Congress for the lack of votes, The IMF would lend in flagrant violation of its own rules. I should not surprise the IMFNews that in the future the Argentine people repudiate that debt for illegitimate in that case. So that those who during the last 15 months accumulated a potential fortune in USD with the financial bicycle can make those profits, only the USD is sold (which the Government would get them with this new indebtedness) to change them for the assets in pesos they have in their portfolio; and that then it is the town who pays the account. In 2024 the retirees paid mainly, and in the years that are coming they will be their children and grandchildren. “He concluded in a long text.
What is “the Guzmán Law”
The “Law to strengthen the sustainability of public debt” It is a regulation promoted by the then Minister of Economy, Martín Guzmánwhich was approved by Congress in 2021 and aims to establish a greater legislative control over the indebtedness process of the country with international organizations, such as the International Monetary Fund (IMF).
Arose in response to The debt contracted by the Mauricio Macri government in 2018when Argentina agreed a loan with the IMF by U $ S44,000 million No intervention of Congress.
The law establishes that indebtedness in foreign currency under foreign law, and with an extension of jurisdiction, will require authorization from Congress. Likewise, future agreements with the IMF must also be approved by Parliament, thus guaranteeing greater transparency and public debate about these decisions.
In article 2, the law indicates that “any public credit financing or operation program carried out with the International Monetary Fund (IMF), as well as any expansion of the amounts of those programs or operations, It will require a Law of the Honorable Congress of the Nation that expressly approves it. “
With the regulations, it sought to prevent future governments from assuming international financial commitments without legislative approval, reducing the risk of over -indebtedness and ensuring that the process is democratically discussed.
However, now, President Javier Milei’s government He announced that he will send to Congress a decree of necessity and urgency (DNU) to obtain body support in new agreement with the Fund, contrary to what the Guzmán Law indicated in 2021.
Source: Ambito
