Through a social media publication titled “Again. First he adjusts to the people and then he goes for more debt with the IMF to finish giving way to his friends,” the former Minister of Economy Martin Guzman criticized the renegotiation strategy of the external debt that carries forward Luis Caputo with the International Monetary Fund (IMF).
The minister of management Alberto Fernandez He began by remembering that “It was Caputo himself who increased the external public debt by USD100 billion when he was a Macri official. It issued bonds that paid 7% interest in dollars when interest rates in the world were close to 0. A barbaric business for your world, that of finance“.
In that framework, he understood that “when the world markets were closed, they went to the IMF, which gave that government the largest loan in history for give an outlet to Caputo’s ‘friends’, financing a historic capital outflow. “Last year Milei won the election promising that the caste would pay for the adjustment,” he continued and criticized the decisions of the current government “They concentrated the adjustment on the ordinary Argentine“.
“So it was that increased the ability to pay the external debt. It did not go through an increase in the country’s production capacity. Less budget for the university, works, health and more for external creditors. Now, once again, Caputo seeks to take on more debt with the IMF to finish giving his ‘friends’ a way out and thus close the business that at some point became complicated for them,” Guzmán considered.
In this framework, the former minister pointed out that Caputo emphasizes “how much new debt and when it is disbursed” and asked to include a new question: “What are you going to use it for?“. “There is no fiscal deficit, so he cannot say that he wants the money to finance it. What happens is that The minister cannot reveal the truth, because he wants it to do the same thing they did in 2018“he added.
To conclude, he asked that “the same thing not happen to us as 6 years ago, when the IMF gave the largest loan in its history to support a government, not a country, and take care of the pockets of those who had come to speculate. Because these people’s pockets end up being taken care of by the retiree who cannot afford medicine, the teacher who has to look for two extra jobs, the students who are left without classes and the company that ends up paying 5 times what is paid elsewhere. country to move a product from a factory to a port because there is no money to maintain or build routes. Taking on more debt with the IMF goes simply against the development of Argentina“.
Luis Caputo assured that talks began with the IMF for a new agreement
The Minister of Economy, Luis Caputoreferred to the dialogue maintained by the Government with the International Monetary Fund (IMF), He specified that they are preparing for a new program and announced that there are possibilities of fresh funds entering the country.
He stressed that starting next year there will be a “closer relationship with the United States” after the electoral victory of donald trumpwho will take office on January 20. “There is the possibility of agreements that previously would have seemed more difficult,” said the official.
“With the IMF we have begun to talk informally about a new program. We are probably going to go to a new program and it will surely involve new money. We are discussing two things, how much money it is and how that money will come in. It is not the same that they disburse you US$1,000 million at the beginning, that they enter US$12,000 million,” he said in an interview with TN.
Source: Ambito
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