The Minister of Economy of Argentina, Martín Guzmán, presented on Wednesday to Congress the details of thecountry debt restructuring planthat the government isnegotiating with the International Monetary Fund (IMF), who has been responsible for the debt crisis, since “it is important” to take this situation into account if you want to “do things right in the future.”
“The IMF made the largest loan in its history,a loan that was not used at all to increase productive capacityof the country but to pay debt in an unsustainable way and to finance capital flight, “he said.
“The IMF is responsible for the debt crisis and the economic crisis that Argentina is experiencing“, the minister has finished off, who, however, has described the first approaches with the Monetary Fund as” very constructive. “
Guzmán has celebrated the speed with which the negotiations are taking place, but has acknowledged that“the situation is hard”, since the best possible scenario to achieve fiscal balance would be 2022.
The Minister of Economy has explained that “many times promising promises have been madethat afterwards they have not been able to be fulfilled “, reason why the present Government has indicated that the objective is to achieve” a diversified productive structure “, with which the” social inclusion “is reached.
Guzman recalled thatArgentina comes from a “dynamic of frustration”, but now it should be the creditors who experience that feeling. “We are not going to allow foreign investment funds to set the pace of macroeconomic policy,” said the head of the Economy, who reminded the IMF and creditors that “there is no worse option than fiscal austerity in a recession.”
“In order to pay the debt,Argentina must be able to grow and for it the weight of a debt must be removedthat suffocation, “Guzmán explained. He has also insisted on” the good faith “of the Government, since at no time are they seeking” confrontation with creditors. “
As the president, Alberto Fernández warned, on previous occasions, Guzmán has suggested that no default is contemplated, claiming that “the nation has givengood faith testsin a critical situation “and maintains its” effort “to pay accrued interest.
There have also been criticisms of the former Mauricio Macri Executive, whose policies have been inherited “aeconomic scheme that generated optimismin the international financial markets, “but, he has specified,” it turned out to be far from being successful to give consistency to a development process. “
The government waitssolve “fast” scenarioand that the province of Buenos Aires, which also overlooks a chasm in terms of payments, follows the same line as the whole country. The region has demanded to postpone the capital maturity of January 26 to May, so that the central executive “takes the initiative in this process”, in the words of Guzman.