President Javier Milei ordered the suppression of the agency’s ability to grant loans. They assure that it is a function that the private sector must fulfill.
The Government of Javier Milei ordered eliminate the power of ANSES to grant loans to workers and retirees. They assure that this is a function that the private sector must fulfill.
Through decree 1039/2024, the Executive power modified and eliminated the ability of the National Social Security Administration to “grant and manage credits” arguing that “it constitutes an appropriate measure to improve the functioning of the State since it seeks to guarantee the preservation of the resources of the Sustainability Guarantee Fund of the Argentine Integrated Pension System.”
The decision of the Milei administration is part of a review of the loans granted in 2023 by the government of Alberto Fernández called “ANSES Credits” for workers in a dependency relationship given that, as they state, “there was a significant difference in the Total Financial Cost, expressed in Annual Effective Rate.”
Among the reasons given, they assure that said line of credits “it was offered with an Annual Nominal Rate of FIFTY PERCENT (50%), while the annual inflation recorded was TWO HUNDRED ELEVEN POINT FOUR PERCENT (211.4%)”. And they added that “offering credits at negative real rates implies an implicit subsidy to the beneficiaries of said credits, to the detriment of the assets of the FGS.”
The FGS “was not created to function as a credit fund, but to guarantee the sustainability of the aforementioned System”so “your assets must be invested in instruments that guarantee the preservation of their value.”
Along these lines, the decree ensures that “the granting of financing constitutes a activity that can be carried out efficiently and competitively by the private sector” Therefore, it orders “to suppress the power of the NATIONAL SOCIAL SECURITY ADMINISTRATION (ANSES) to grant and manage credits.”
The ordinance issued by the Milei government falls within the powers granted by the Bases law to modify the powers of organizations “that have been created by law or regulation with equivalent rank.”
“The measure adopted here falls within the bases of the delegation established by Law No. 27,742, as it promotes an improvement in the functioning of the State, allowing more efficient public management in the interests of caring for the common good, by optimizing the powers of the NATIONAL SOCIAL SECURITY ADMINISTRATION (ANSES)”, the decree states.
Source: Ambito
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