May 16, 2022 1:21 am

Break, fight, negotiate, sign: the different positions within the ruling party against the IMF

In full negotiation with the International Monetary Fund (IMF) and hours before the first due date of US$718 million that the government of Albert Fernandez, the discussion around a possible agreement once again exposed the divisions in the ruling party: from the most intransigent sectors, who declared themselves against reaching an understanding with the Fund and even advocate entering into a default, to those who affirm that it is more convenient, necessary or indispensable to reach an agreement. The spectrum of opinions within one’s own front of all it is wide and varied.

“First things first: Not ONE more dollar to the IMF! [sic]”, It is one of the slogans under which the march was announced today by “self-convened” groups against the renegotiation of the loan. One day after the government of Fernandez faces the first capital maturity of the year with the credit institution, another motto is “The scams are not paid, neither this Friday nor ever”.

Participating in the mobilization that began around 10:30 in the Obelisk and that is headed to the Ministry of Economy different leftist groups, social organizations and sectors related to Kirchnerism. To the statement released this week by the so-called Self-call for the Suspension of Payment and Debt Investigation the Nobel Peace Prize was added among others Adolfo Perez Esquivel, the mother of Plaza de Mayo Nora Cortiñas and the director of the National Bank Claudia Lozano.

March against the payment of the IMF, in the obeliskThomas Cuesta

Lozano directly asked to “suspend the payment” and stated that “an agreement with negative effects cannot be reached.” “You have to suspend the payment, keep talking and put it in the right place: it has political content. The Argentina could have taken the discussion to the UN: you have to do politics with this, this is not a stand-by credit”, opined the economist. “Argentina has the experience of the default in 2002 and showed that it can resolve its situation“, full.

Deputy Fernanda Vallejos joined those who openly declare themselves against the understanding with the Fund -which he described as the biggest systematic violator of the human rights of the peoples- via Twitter and considered that “The country is in danger. Vallejos is a member of the Kirchnerist group “Soberanxs”, led by former Kirchnerist officials Amado Boudou, Alicia Castro and Gabriel Mariotto, who asked that the Government take the IMF to the International Court of Justice.

In this group, both the vice president Cristina Kirchner Like his son Maximum. Also includes the governor. Axel Kicillo. They are those who publicly maintain that there must be an agreement, but maintain a critical position towards the body and condition any negotiation to not promoting an adjustment on State spending.

From Honduras, in a conference entitled “Peoples always come back”, Cristina Kirchner yesterday pointed against “adjustment policies.” Although he avoided explicitly naming the IMF -and made it clear that he was avoiding doing so-, ended up linking drug trafficking and its growth in the region to multilateral credit organizations.

Maximo Kirchner He also launched several criticisms of the credit agency. “The IMF cannot have such a greedy attitude regarding our country after the conditions in which it lent them, after a pandemic, and wanting these situations to be resolved as if these events had not existed,” he said in an interview in Radio El Uncover.

Cristina Kirchner spoke in Honduras

kicillof He also assured on several occasions that the Government must “review” its strategy and criticized international organizations. He claims that the negotiation does not affect the economic recovery. “It is at stake how we continue, at this stage we cannot accept an adjustment because we have levels of job loss as a result of the pandemic and (Mauricio) Macri’s management and an active policy is required to reach those who need it most “, assured the governor of the province and added, in dialogue with Radio 10: “That the IMF does not deviate from what is a policy of clear recovery“.

Halfway between this group and the “intransigents” stopped yesterday Leopoldo Moreau, a deputy who is part of the circle closest to the vice president. For this reason, it was noteworthy that Moreau relativized the impact of an eventual default: He said that it should not “terrorize” and considered that it is not “the worst of remedies.”

Leopoldo Moreau
Leopoldo Moreau

“We do not propose default, but they push us to default. We are not the party of the default, but we are not going to hand over society hand and foot to the worst of adjustments, we are not going to play democracy in a timba”, the former radical leader pointed out to Radio with you.

Nestor [Kirchner] he governed Argentina for two or three years in default until he reached an agreement with the private bondholders and with the IMF, and the currencies were used not to pay the debt but to reactivate the economyMoreau added.

On this path, the proposal of ten former presidents of the region was added yesterday, who demanded that the IMF more flexible conditions to agree. It was through a letter entitled “The IMF must assume its responsibility.” They demanded “the immediate elimination of surcharges” and deadlines “that allow economic growth without brutal adjustments or fiscal restrictions that subject the Argentine people to conditions of impoverishment.” It was prompted by Brotherhood Group, a conglomerate that includes Kirchnerist legislators Eduardo Valdes (national deputy) and oscar laborde (Parlasur legislator). The signatories also include the Minister of Defence, Jorge Taiana; the senator oscar parrilli and the trade unionist Victor Santa Maria.

There are also those who, without abandoning the public discourse that the agreement with the fund cannot condition growth, made more or less discreet steps to advance an agreement with the IMF. In these rows is the chief of staff, John Manzur, who It would have conditioned his continuity in the Government that the agreement with the IMF materializes. “We want to agree, but without putting a brake on the country’s growth”, affirmed the chief of staff in a meeting with accredited journalists at the Casa Rosada and warned that it is necessary for the country’s economy to improve in order to comply with the eventual agreement. He was one of the officials who traveled to the United States to bring positions closer together.

Juan Manzur and Sergio Massa tried negotiations in the United States to reach an agreement
Juan Manzur and Sergio Massa tried negotiations in the United States to reach an agreement

Most of the PJ governors are in this group: they hope for an agreement, they privately warn about the negative consequences of not achieving it, but they avoid getting involved in the internal discussion between Kirchnerists and Albertists. The Governor of Catamarca, Raúl Jalil |, who will travel with Fernandez to Russia, China and Barbados said he has “faith” that the agreement will be closed by March at the latest. “The government is working to reach an agreement with the IMF. The issue is on the way to being resolved,” assured the Catamarca president.

Sergio Massa He maintains the line of “paying by growing” and is another of the ruling party’s referents who promoted conversations with officials of the Fund and the United States. “We, the members of the Front for All, what we did was place trust in the President, the Minister of Economy and in the team that is carrying out the negotiation, because we understand that our responsibility is to solve this problem well,” said the president. of the Chamber of Deputies in an interview with C5N. “Argentina’s ability to pay depends on the ability of the rulers to sell Argentine work to the world,” he added on another occasion, after a meeting with Buenos Aires leaders of the Renovating Front.

Without abandoning the dominant discursive axis (“an agreement that does not stop growth”), in the ruling party there are also leaders and officials who openly warn that it is necessary to close an agreement and that this is the most favorable scenario for Argentina. The group has two forced tenants: the minister Martin Guzman, in charge of negotiations with the Fund since December 2019, and the president Alberto Fernandez, who also participates in the efforts, although at times his speech took on the tone of the “hostile”.

Just one day after Moreau’s statements, the Minister of Productive Development, Matias Kulfas I consider “an act of willfulness or irresponsibility” put the reactivation at risk in the face of the hypothesis that the situation would be worse with an agreement.

Matías Kulfas is an official of Alberto Fernández's kidney
Matías Kulfas is an official of Alberto Fernández’s kidneyRicardo Pristupluk

This idea of ​​’I don’t pay the Fund and I use that money for other things’ is a fantasy., without taking into account a multiplicity of elements that can affect the economy and I believe that could exacerbate the country’s problems”, he launched in dialogue with Radio With You the kidney official of President Alberto Fernández in a message that seemed directed at hard-core Kirchnerism.

“I am convinced that it is much better for Argentina to make an agreement that allows us to continue growing than, as I hear out there, not making an agreement. Because that, in and of itself, is going to be bad. This hypothesis is not validated with reality”, said the minister.

Kulfas assured that in Argentina there is “recovery” and he believed that the country is in a position to reach an agreement that allows it to continue sustaining it. In this way, the minister tried to explain that the demands of the IMF are not so crude and despite the fact that he characterized the negotiation as “hard” he even assured that there were issues on which the agency yielded. “To say that the Fund did not move, I think it is ignorance,” he said.

“Another issue that I hear is that it is said that we have been in default and the economy grew, for example, in the government of Nestor Kirchner. But at that moment we were in default with private creditors, not with the IMF. With the IMF there was a delay in payment, it does not qualify as a default”, added Kulfas, an argument put forward by Lozano and Moreau.

Daniel Arroyo, former minister of social development of the Nation, now deputy for the Frente de Todos, in an interview with LA NACION
Daniel Arroyo, former minister of social development of the Nation, now deputy for the Frente de Todos, in an interview with LA NACIONTomas Cuesta – THE NATION

Added to this list is the former Minister of Social Development and current national deputy Daniel Brook, who today considered “essential” an agreement with the Fund to get out of the crisis. “We must reach an agreement with reasonable payment schemes that allow us to grow. Without an agreement with the Fund, the situation is going to get more complicated,” he stated in an interview with LA NACION.

Arroyo criticizes the loan acquired by Mauricio Macri but assured that an understanding with the body he directs is necessary Kristalina Georgieva for a possible growth of Argentina. “This year we have to pay 19,000 million dollars and the other 20,000 million dollars. The loan has been absurd in the amount, in the forms and in the characteristics. But an agreement is needed that allows growth and progress, due to the structural weakness that Argentina has”, he pointed.

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