The bill sent by the Government repeals the ANSES Sustainability Guarantee Fund and transfers the assets of the FGS to the Treasury managed by the Minister of Economy, Luis Caputo. This means that the bonds and public securities that Anses purchased from the Economy to finance the deficit, plus the shares of the companies in its portfolio, remain with the Treasury: the former will be ‘cancelled’ in an accounting entry and the company documents would imply a injection of approximately 5,682 million dollars according to data from this month’s Anses monthly statistical report.
The truth is that the law created in 2007 when Néstor Kirchner nationalized the AFJP system would be canceled. The project presented by the Government repeals article 12 of law 26.425 (of 2007 which nationalized the Afjp) where it is said to “create within the National Social Security Administration the Council of the Sustainability Guarantee Fund of the Integrated Pension System Argentinian, the purpose of which will be the monitoring of system resources.” Also select other features about your investments.
Article 226 of the project sent to Congress yesterday also states that the FGS money passes into Caputo’s hands: «The transfer of the assets of the Guarantee and Sustainability Fund established by decree 897/07 to the National Treasury Fund is envisaged. The NATIONAL EXECUTIVE POWER has the power to adopt all measures necessary for the implementation of the provisions of this article”.
Before concluding his mandate, Fernando Raverta said that the FGS had reached a value of 76 billion dollars, “the highest in its history during the current administration”, and that from 2019 to 2023 it grew by 117%. The valuation was carried out at an official exchange rate of 380 dollars.
However, according to current Anses data, the FGS as of November 30, 2023 is expected to be worth $32,658 million on a dollar counted with settlement of $830, less than half of what Raverta reported.
In recent years, the Anses FGS has been used to control the price of the dollar through the buying and selling of securities, to provide real estate loans for procreation and, to a lesser extent, production lines.
Pensions are not paid by the FGS as the wage system requires active workers to contribute and finance those who retire. The FGS is a specific patrimony, established with the aim of managing the patrimony that has been conferred on it with the “patrimony” of the AFJP.
Economía would now have the shares of private companies and could sell them. At the time it had a management team that managed the state’s shareholdings in private companies. It was the time when Axel Kicillof was minister. Cristina Kirchner, a few days before ending her mandate in 2015, promoted a law that created the “Agency for State Participation in Enterprises” and which Mauricio Macri repealed.
The discussion is what will be done with that money and whether it will be used to cancel the trials Anses is facing and have a final sentence. The shares of private companies held by FGS represent 17.4% of the capital. This way, if Caputo sold them, he would earn at least $5.6 billion.
Finally, the current plan calls for a “national public sector debt consolidation” to establish the full cancellation of intra-public debts. Its text specifies that the “holdings of public debt securities” in the hands of all state bodies and the aforementioned Anses FGS will be consolidated in the national state.
Since with this accounting entry Caputo will lose the securities coming from FGS, it could be said that he will gain around 5 billion dollars in private shares without going to the market. Many call him “the financial wizard”.
Source: Clarin
