Together for change came out at the crossroads of an imminent debt swap promoted by the Minister of Economy Sergio Massa. Through a statement he considered that the maneuver “it will only bring more instability” and lead to “serious problems”.
“Together for Change’s legislative blocks warn THE serious risks which involves the debt conversion being prepared by the Ministry of the Economy”, they say in the text released this Sunday.
According to JxC, the aforementioned exchange “It will give banks an option that no investor has.” It is, according to the coalition, a “double bonus” adjustable for depreciation or inflation (major).
Furthermore, they claim that they will have the option to sell all securities to the Central Bank at any time (the so-called “put”).
“This would imply a “Insurance Exchange” for bondholders (the banks) and that local debt that matured every 3 months now, in practice, has daily maturities. All of this extended to 2024,” they explained.
For the opposition armed forces created by Mauricio Macri, this would imply a “enormous risk for Argentines”. In this sense, they specified that the maneuver “could lead to an inflationary leap even greater than that already produced” by the Government.
“Besides generating serious problems for present and future economic management“, they added in a gesture of alert in the face of a possible opposition government after December, in line with previous communications that spoke of the legacy of a “bomb” in the economic area managed by Massa.
Finally, the press release states that the maneuver “constitutes a violation to the principles of the Law on Financial Administration and of the Organic Charter of the BCRA itself”.
The release of Sergio Massa’s brother-in-law
Who echoed the communication of Together for Change was Sebastiano Galmarini, brother of the head of AySA, Malena, and brother-in-law of Sergio Massa.
Galmarini, director of Banco Provincia, seemed to come out at the crossroads in his capacity as massist leader. Through his Twitter account he attacked the opposition: “Say it shamelessly! They want Argentina to explode.”
For Galmarini, the opponent’s game is not just about”electoral speculation against the government” but also “doing business.
“They want debts in pesos not paid, the currency is devalued and inflation is out of controlat the same time that the salary loses value,” he said on his social media this Sunday.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.