Argentina: Steps towards an agreement with the IMF at any price

Argentina Senate passed a law to ditch an economic crimes bill, as one of the conditions imposed by the International Monetary Fund to provide with vital financial aid. In his turn, President Duhalde threatened the Congress he would resign if this new legislation was not approved.

The “Economic Subversion” law had been criticised by the IMF for persecuting local and international bankers on capital flights in the run on deposit last year. In addition to the mentioned above, the IMF also obtained Congress agreement to pass a bill on bankruptcy, letting foreign creditors to acquire any Argentina company which has defaulted on its debt with them.

However, even when the Argentina Government humiliated itself, promoting laws obviously against national interests, a deal with the International Monetary Fund is far from being ready. Nevertheless, the Government expects to obtain an agreement to encourage other multilateral lenders to front funding to help it crawl of its worst-ever crisis.

The price the country had to pay was very high. It surrounded its National Companies to foreign interests (mainly from the USA, main creditor of local private enterprises) and allowed the IMF, a small dependence on the White House, to release its friends from prison. The derogation of the “Economic Subversion” law gives carte blanch to foreign investors, bankers and financial institutions to commit any kind of fraud without danger of being brought to trial.

Hernan Etchaleco PRAVDA.Ru Argentina