The Minister of Economy, Luis CaputoHe pointed out that the agreement with the IMF, which was published this morning, is something that did not happen “never in our history.” As the official said to cite a lid of the Clarín newspaper, “it is the first time that an agreement will be made with the fund to repair the damage that policy has caused to citizens via the abuse of public spending.”
According to the Minister’s statement, it seems that IMF’s dollars would arrive to improve the living conditions of the working class, something that did not happen with the previous agreements where poverty and unemployment only increased. Since Macri agreed on the Stand By loan until the end of 2023 there were 8 million new poor people in the country. Argentina lived a horror story with the IMF, but according to Caputo this time it will be different. The statement of the minister, who was president of the Central Bank for three months in 2018 during the Macri government, and then was ejected at the request of the Fund for Rifar the dollars and violate the statute of the agency, is striking.
In addition, Caputo detailed in the social network X that the new agreement with the Fund will allow solving the “problem of stocks that resulted in the appropriation of the Central Bank reserves via National Treasury debt.” The Government repeats that a part of the IMF dollars will be used to clean up the Central Bank. But once the dollars enter the coffers of the monetary authority, How will those dollars be used? That does not detail the government. There is currently a currency bleeding to sustain a cheap exchange rate. The economist Esteban Mercatante warns “What the DNU does not say is what the BCRA will do by improving balance. Are we going to believe that it will not do more than what the dollar level has already been bankrupt, which is to spend reservations to operate in the markets? If so, again the mortgage will be to pay the escape. ”
In the same way, Javier Milei He published a post on Instagram that repeats the same verse of Caputo, which “for the first time in history the agreement with the background will have the purpose of repairing the life of citizens after decades of party with public spending.” If so, why is the small print of the agreement know? It is known that from the option of options offered by the IMF to wear out countries, The extended facilities agreement It is the hardest in conditionalities. According to the IMF website, it includes requirements of structural reforms (labor, pension and tax) and quantitative conditions (adjustment) in macroeconomic accounts. That is, it includes a combo of anti -Oberial measures unlike what the government sells with this new agreement.
The debt mortgage: I was not
On the cover of Clarín that the minister shared, he reads as the main title “The Government will use the Silver of the IMF to pay the debt with the central that left Kirchnerism.” The hidden newspaper cover that was the Macri government who went to the IMF and the history of how it ended is known by the working people. The Macri government squandered much of the dollars of the IMF in capital escapethat, again, as in 2001, they carried out the great Argentine companies, but that was favored by Caputo’s policy, something that even Milei questioned saying that “Caputo smoked more than 15 billion dollars.”
He Government of the Front of All He could have objected the inherited debt barely assumed, but on the contrary, he validated it in Congress with a new agreement reached by Martín Guzmán with the IMF. Dollars were also squandered to pay fictitious private debt in dollars. They were companies that asked for cheap dollars to the Central Bank to cancel their liabilities abroad. Under that modality almost US $25,000 million between 2020 and 2022, according to the Central Center. All this looting happened without the government of the front of all carrying out any investigation.
Argentina fell at the IMF in 2018, 7 years ago, and in those years several agreements were renegotiated, but the mortgage continues. Now Milei and Caputo want to close a new agreement that will be for 10 years, a decade. As it details Marketing“17 years with economic policy under the audit of the IMF, which put ogs for 1) ensure charges of other private creditors; 2) Finance the capital escape although the statutes of the Fund prohibit it, and 3) to continue paying the fund ”. It is a new government scam, which will imply more adjustment and counter -reform to comply with creditors.
Debt is a dependency mechanism against imperialist financial centers. Pay the debt and continue under the IMF boot submits to the life imprisonment of misery to the majority of an endless economic decline. Mobilization against this fraud and sovereign ignorance of debt is necessary.
Source: www.laizquierdadiario.com
