Through the DNU 179/25 the government confirmed the intention to continue endorsing the payment of an odious debt to the IMF. Milei and Caputo accelerated the negotiations with the fund to seal this final section of the agreement. The news was known after a day crossed by strong falls in the Buenos Aires bag and rises from the country risk. While these falls are framed in a global stock exchange climate of Trump’s tariff measures, the truth is that the doubt of financial capital regarding the economic course of the government felt strong in the month of February. The S&P Merval shares sank 17 % measured in dollars and the irrigation country ended at 780 points.
The DNU will govern from its publication in the Official Gazette from tomorrow, it provides that the fresh funds will be used for the cancellation of “the non -transferable letters in dollars held by the Central Bank” and “Public credit operations held within the framework of the extended facilities program of 2022 whose expiration operates within four years of the subscription of the agreement.”
This means that a new scam is enabled. Not only is it expected that the disbursements of the Fund are allocated to the payment of debt with that agency, but also enable them to allocate them to the cancellation of Treasury debt with the Central Bank. That way the dollars of the new program would go to the BCRA coffers. From the government they sold this maneuver as a reduction of debt, to clean up the balance of the central. However, it is a debt handrail, which now implies a new external creditor, is to give greater firepower to the IMF to demand measures in economic and monetary matters. In addition, the interests that would be paid with that body are greater than the existing ones that were very low.
In addition, sending a agreement for DNU without even showing the small print of the same is a jump, as Myriam Bregman denounced in X, the Government will ignore the National Constitution, the Financial Administration Law and a law promoted by Martín Guzmán. Milei wants Congress to vote for a blank check.
Scams are not paid
In the last three months, the central sold 2 billion dollars, according to a report by the Capital Foundation, dollars to avoid jumps in the gap between the officer and the parallels, sacrificing reservations. This distrust of the “markets” about Milei’s plan was enhanced after the cryptogate of $ Libra and the different judicial complaints to the president, both in the country and in the US. The “commercial war” initiated by Donald Trump complicate the economic situation.
Given this scenario and the lack of dollars to face new maturities in foreign currency, the government was accelerating negotiations, to bring some “good” news to large economic groups. Although the government has the endorsement of the Trump administration, the gray points that would have delayed the decision of the agency leading Kristalina Georgieva are: devaluation and exchange rate. The cheap dollar is one of the pillars of the government plan, together with the backwardness of wages and retirement.
Milei reaches a new agreement that subjects the broad majorities to fiscal adjustment policies and IMF conditioning. A new great scam that promises more chainsaw for retirement, health and education. Also to public works and infrastructure with the catastrophic consequences that this brings, it is evidenced in what happened in Bahía Blanca. Which implies thousands of state dismissals. All with the sole purpose of paying an odious debt, and responding to the guidelines of international financial capital. To end this adjustment you have to put a brake on this new installment that prepare Milei, Caputo, the IMF, the entrepreneurs and the polypitic caste that predisposes to endorse this scam. Below the agreement with the fund, not to the payment of the odious debt. Let us prepare the widest mobilization in the streets to face these adjustment and coil policies.
Source: www.laizquierdadiario.com
