Sergio Massa announced a new debt swap with the aim of shielding the economy before the STEP. Criticism from the opposition, which again appeals to the term “inheritance”.
“The story of the argentine democracy note that every time a government does not re-elect and shows itself to be weak, it is economically destabilized. This already happened during the end of the governments of Raul Alfonsin, Fernando De La Rua y Mauricio Macri”, introduced Jorge Fontevecchia at the opening of Modo Fontevecchiaby Net TV y Radius Profile (FM 101.9) on Tuesday, March 7.
“The Constitutional reform of 1994 and the implementation of the PASO they implied a new variable to the transition of governments. Today, the democratic system includes the primary elections, the general elections and finally, if necessary, the ballot,” Fontevecchia explained.
“This implies that, between the first electoral poll and the inauguration of the incoming government, there are four or five months where the outgoing government has no power and the incoming government has no pen“said the driver.
“A little over four years ago, and after losing the elections, Mauricio Macri He assured that his government had ended in August, long before the transfer of command on December 10,” the journalist recalled.
Again noise between Alberto Fernández and Cristina Kirchner
“What the Argentine government did yesterday, through its Minister of Economy, Sergio Massawas to buy one “August Vaccine” and shield the economy to avoid running out of power in the event that the PASO project the opposition as the winner. The cost paid for this vaccine is the main discussion among economists in recent hours,” Fontevecchia said.
After announcing the change, Massa was the first to try to bring peace of mind to citizens who choose deposits to protect themselves from inflation: “giving predictability to the link between the public sector and the financial system has savers as the final beneficiary,” said the Minister of Economy who also he was satisfied for the negotiations carried out “working together despite differences“.
In a conference that showed him tired, confirming once again that public management seems to speed up the passage of time in civil servants, Massa did not miss the opportunity to recall the infamous “reprofiling” during the time of Hernan Lacunza and assured that with the new exchange “it defuse the bomb idea that is about to explode every two months”.
Juan Grabois imagines himself president and is already considering measures: “If I win the elections, I’ll kick Massa out tomorrow”
Beyond the terminology used to define debt renegotiations, there seems to be a point on which the opposition is excessive: in all countries debts are not paid and refinance. The problem appears when there is no possibility of such refinancing.
The “inheritance” again on the lips of the opposition
Said Hernan Lacunza was one of the first to respond to the lecture of Sergio Massa and tried to resume a concept used during the government of Mauricio Macri : “the ruling party does not leave him a inheritance to the next governmentit is left to the Argentines”, assured one of the main economic referents of the opposition, who also tried to “chamuyo” the idea that the debt in pesos is not important.
How the debt exchange that the Government and the banks closed will work
Beyond the logical defense that Sergio Massa made of his negotiation and the inevitable criticism from the opposition, it is interesting to review the position of Juan Carlos de Pabloexperienced economist, who tried to imagine the meetings between the minister and the creditors and affirmed that both were totally “delivered”: the State, for not having reserves to be able to face the debt, and the banks, because the titles are worthless.
The conclusion is that everyone behaved as the situation warranted: the banks gave upthe government bought their “August vaccine” to avoid the turbulence after STEP and the opposition made the pertinent criticisms to bring water to his mill.
ADP JL
