The opposition has persisted with its criticisms of the new exchange of securities in pesos that the economic team, led by Sergio Massa, closed this afternoon with the banks to kick off payments to 2024 in exchange for index-linked bonds and depreciation insurance.
Yesterday and simultaneously with the harsh declaration of the legislators of Together for Change, three referents of that spaceformer Economy Minister Hernán Lacunza, former BCRA head Guido Sandleris and deputy Luciano Laspina, They described it as “a cowardly and state-ruining operation”.
In three consecutive tweets, the economists speculated, when the details of the deal were not yet known, that the government “would deliver a double bond adjustable for devaluation or inflation – the bigger one – and bond buyback insurance (put) at the expense of the BCRA which could be activated at any time”.
They also emphasized the exchange “would violate Article 19 of the BCRA’s Organic Charter and the principles of the Finance Administration Act”, which “would imply exchange insurance for bondholders (banks) and the debt -which currently matures every three months- would come due daily (optional for bondholders if the price falls)” .
Thirdly, they highlighted that “the most serious thing is the enormous risk it generates for Argentines, because if the option is exercised could trigger a new rise in inflation at any time, which no responsible central banker could admit.”
In reality it is a summary of the communiqué released this Sunday by the opposition legislators, which is entitled “A new maneuver by the Ministry of Economy that will only bring more instability”. The swap “implies exchange insurance for bondholders and that the debt, which used to be due every three months, now, in practice, has daily maturities. All of this extended to 2024,” they stressed.
consulted by clarionan opposition economic leader stressed that “what the government is trying to do is buy time and throw the ball forward” and that “playing with fire” Similarly, the source pointed at banks, “which have a fiduciary responsibility with depositors.” In this sense, he underlined that “we demand prudence in the face of the precarious stability that exists”.
Opposition economists argue that the underlying problem is fiscal, aggravated by the recent sanction of the pension moratorium, the cost of which would represent 0.4% of GDP. The exchange, they add, “is an operation that can trigger more monetary issuance at any time”, which would have an impact on inflation.
Source: Clarin
