The former Minister of Economy Martín Guzmán, He described how “A shame” The use of a Decree of necessity and urgency (DNU) To negotiate a new agreement with the International Monetary Fund and assured that, if new disbursements are approved, it should be considered as “illegitimate debt”. In addition, he considered that if the government of Javier Milei “I was going well, I wouldn’t go to the background. “
After the endorsement of Congress to DNU of Milei which will enable the Executive to renegotiate and agree on the terms of a new plan of indebtedness With the multilateral organism, the economist spoke with the program that leads Raúl “Tuny” Kollmann in Radio 10 Regarding the mechanism chosen by the president to validate the discussion with the Background and the effects it could generate on the Argentine economy.
“It is a shame this DNU and it will be in history”, The former Palacio de Finance said between 2019 and 2022 and recalled that currently “There is a law”in reference to the so -called ‘Guzmán Law’ of its authorship, promoted to force the Executive on duty to send a bill to enable indebtedness schemes with international organizations “Because in Argentina it has already happened many times that a government borrows the country and we already saw the consequences in 2001, 2018”.
On this occasion, the libertarian administration ignored the provisions of the regulations and instead of sending a legislative project, which would have required the approval of deputies and the Senate, decided to sign a decree that barely needs the support of one of the two chambers to achieve its validity, which happened last Wednesday.
In this regard, Guzmán explained that “There is an IMF rule (criterion 4) that says that for the fund to lend there must be broad political support” and stressed that “If the fund lends, he will be lending to a government that eluded the Senate because he just had no political support.”
“The Minister of Economy (Luis Caputo) acknowledged that there was not enough support in the Senate to approve indebtedness,” he emphasized. And, in that sense, he said that if the agency authorizes disbursements under these conditions “We are many who are going to consider that debt as illegitimate.”
Martín Guzmán: “If the government was going well, I wouldn’t go to the IMF”
Then he referred to the background reasons why the administration of Milei seeks to expand indebtedness. “It has to do with the fact that external accounts do not close. The dollars enter and leave the country. If the government was going well, it would not go to the IMF,” He pointed out.
In that line, he argued that There is “a sector of the economy that generated huge returns”mostly “Those who speculate with instruments in pesos”who “Today they expect dollars to go out”. “This has already happened. U $ 45,000 million dollars were already spent. And today they go for the same thing again,” he recalled, referring to the agreement with the IMF of 2018.
Guzmán assured that the agreement with The IMF “is basically a political loan” And he questioned that the president and officials are not giving the necessary explanations about the destiny that will be given to him. “The government should explain what this money really wants,” he said.
The former minister described as “a verse” the defense of the loan that the government rehearsed, ensuring that the debt volume will not increase. “It’s a clown,” he reaffirmed and was for more: “Debt is not for Argentina to prosper: it is not for education, or science and technology, or for public works.”
Finally, he also pointed against an opposition sector for validating the DNU. “It would be constructive for Argentina to have a real opposition and at this time. Because then it’s too late,” sentenced.
Source: Ambito
