The problem was never restructuring: 45 days after the Martín Guzmán agreement

TUCUMÁN NOTICIAS.- Fundación Libertad y Progreso analyzed the most outstanding points of the agreement that was reached with the bondholders and creditors. This was announced by the Minister of Economy, Martín Guzmán, and President Alberto Fernández. However, you are already beginning to see problems.

The aforementioned Foundation explained that “the solution was never restructuring, because the problem was not the debt, but its consequence.” The analysis is given within the framework of a new negotiation that Argentina will hold with the International Monetary Fund for the payment of US $ 49,000 million.

If we analyze the evolution of an AL30D bond, in parity terms, since its debut trading just over 50 dollars, it fell more than 25% to reach less than 40 dollars on November 9. In other words, those who buy and sell these securities hope that, in the not too distant future, Argentina will have problems with its debt again, restructure it and make a write-off.

“We noticed it at the time when the Government proposed that the debt restructuring should have a reduction level that would make it sustainable. For Argentina, there is not a sufficient level of withdrawal to make the debt sustainable while governments insist on overspending. Even if they forgive us all the debt, if they insist on spending more we will go to a new restructuring, “said Aldo Abram.

Immediately after renegotiating the debt, measures were applied that added uncertainty to the economy and the market understood that they were undermining property rights. Reinforcement of the stocks; the attempted expropriation of Vicentin; the decree on the declaration of Information and Communication Technologies (ICT) as public services; the wealth tax and land grabbing, among others.

Minister Guzmán assured that after the restructuring of the Argentine debt, the economic problems that our country has dragged on for years were going to be solved. However, this was not the case. What must be borne in mind is that debt resolution was a necessary but not sufficient condition to set the country on a growth path.