The lawsuits and renegotiations of the Kirchnerist governments will cost Argentina more than US$64 billion
The consulting firm FMyA, chaired by the economist Fernando Marull, estimated that the sum of costs due to the inheritance of renegotiations and lawsuits resulting from the decisions of Kirchnerist governments would reach US$64 billion.
The Kirchnerist inheritance is significantly heavier and more tortuous than even the total debt subscribed to the International Monetary Fund (IMF) in 2018, which represented up to US$45 billion.
This amount comprises:
- The fateful and disorganized expropriation of YPF in 2012,
- The lawsuit with the holdouts for the debt securities issued in 2001 and exchanged in 2005,
- The renegotiations carried out by former Economy Minister Axel Kicillof with the Paris Club in 2014,
- The statistical falsification of the INDEC regarding the payment of the GDP coupon bonds.
All these unconventional decisions imply a sidereal cost for society.
Marull’s consulting firm summarized the sidereal costs of Kirchnerist economic policy as follows:
- US$2.1 billion for INDEC’s statistical falsification and the base year change approved by Kicillof in 2013.
- US$9 billion for the illegal expropriation of YPF and the corresponding compensation to Repsol.
- US$9.6 billion for compensatory interest for the Country Club, given Kicillof’s reification in 2014.
- US$4.7 billion for issuing “future dollar” through the Central Bank towards the last year of Cristina Fernández de Kirchner‘s administration.
- US$18 billion through the lawsuit with the holdouts in April 2016, among many affected funds led by the famous businessman Paul Singer
- US$4.7 billion in unpaid debts under the “Gas and Energy Plan”.
- US$2.9 billion for legal disputes at the ICSID, the World Bank’s body to resolve disputes for breach of contracts between States and private companies.
- US$13 billion (the final amount is still under dispute) for the last lawsuit lost by the Argentine State in favor of the Burford fund, again due to the dramatic takeover of YPF.
According to the economist and national congressman Luciano Laspina, the cost of the malpractice of the Kicillof administration at the head of the Ministry of Economy amounts to US$33.734 billion, between unsuccessful renegotiations and nationalizations for merely ideological purposes.
In other words, only because of the management of former Minister Axel Kicillof, the country must face a cost equivalent to almost 75% of the loan with the IMF approved in 2018.
This cost does not simply respond to poor performance in managing the public debt that the State must constantly refinance but to decisions inherited from the Kirchnerist script and independent of the burden inherited by previous administrations.
With information from La Derecha Diario
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