The Government will give control of the trust funds to the Ministry of Economy and Luis Caputo continues to gain power - Infobae
Source:
www.infobae.com
February 28, 2024
Javier Milei will sign a decree in the coming days so that the Treasury has management of the trusts, in the midst of the fight with the provinces. The conversations with the IMF and the plan to dollarize
By Federico Galligani
The Minister of Economy, Luis Caputo, will have more issues in his charge (TÉLAM)
In the midst of the fight with the provinces over the debts they maintain with the Nation within the framework of different trusts, President Javier Milei will sign a Decree in the coming days to leave those funds in the hands of the Ministry of Economy, so Luis “ Toto” Caputo will continue to gain power within the Cabinet, while trying to resume dialogue with the governors.
The ruling party is convinced of putting an end to this tool that was used for many years by different administrations and that is used to finance different projects, with money outside the Budget approved by Congress.
According to what official sources told Infobae , in recent months an audit was carried out and it was discovered that there are “more than the 30 that were initially reported”, so the national authorities began to analyze how to disarm them.
“They are all black boxes of politics . That must be finished. That makes many people very nervous. There are many political agents who make a living from that,” the head of state himself stated in this regard, during a television interview.
The decision will be signed by Milei (AP)
At first, the Government studied the possibility of eliminating them directly, but here the first complication arose, since only nine of these trusts could disappear through Milei's signature, but for the rest of them a law is needed.
Likewise, at the Casa Rosada they highlighted that in many cases it is also difficult to end these financings, which are used, for example, for infrastructure works, since there are some initiatives that are in full development and with current contracts with different companies.
For these reasons, the decision of the Executive Branch was to opt for a way to, instead of eliminating them, control them and have management of the money circuit in question. They will achieve this with a single Decree that will be published in the Official Gazette .
The rule will establish that, as of its entry into force, the Ministry of Economy of the Nation will be the fiduciary of all existing funds , so it will have the management of them, always complying with the terms established in the original contract.
According to official sources, in this way the decision-making power over the money will be taken away from the current trustees, who are generally the vice-governor or some official of the benefited province , and given directly to “Toto” Caputo.
https://www.infobae.com/politica/20...as-mas-perjudicadas-por-el-recorte-de-fondos/
Technically, a trust is a legal instrument that involves three key parties: the settlor, the trustee, and the beneficiary. The first of them transfers certain assets or properties to the second, who manages them, in accordance with the terms established in the contract, to favor the latter.
In practice, the governors and the Nation used this legal mechanism, which has fewer controls, on several occasions to be able to advance with different projects - such as public works - that are not contemplated in the annual budget approved by Congress .
Some of those that already exist are, for example, the programs to promote some productive sectors or even the “Procrear” plan , aimed at building homes for the humble sectors, among many others.
The lack of agreement to eliminate trusts brought down the Omnibus Law (EFE)
Unlike the items found in the Budget law, approved every year by the Chamber of Deputies and the Senate, these funds cannot be modified or allocated to any objective other than the one established in the contract.
Likewise, the money in question is managed by officials who are designated for that task, but who do not have to submit to the same control mechanisms that other forms of financing require to guarantee their transparency.
The President has wanted to end this financing mechanism for several months and, in fact, the decision of some sectors of the opposition not to support the article that established its elimination was what led to the fall of the Omnibus Law , which, in turn, time, unleashed a judicial battle with the governors.
After the frustrated session in the Chamber of Deputies, the Government withheld 13 billion pesos from Chubut as co-participation, to settle part of a debt that the province had with the Nation for money that they received, precisely, through one of these trusts .
This triggered a confrontation between Milei and the Chubut president, Ignacio “Nacho” Torres , who presented a claim to the Court for the restitution of that figure in its entirety and obtained a favorable ruling from a judge in Rawson, although the discussion continues.
Caputo with Kristalina Georgieva
For his part, this measure would give more instruments to Minister Caputo, who already absorbed a large part of the areas that were under the orbit of the defunct Infrastructure portfolio, after the departure of Guillermo Ferraro from the Cabinet.
The official is currently in Brazil, for the organization of the next G20 meeting and, in that context, he met with the managing director of the International Monetary Fund (IMF) Kristalina Georgieva .
According to what sources close to Milei detailed to this medium, the relationship with the international organization "is very good" and the staff was collaborative in agreeing to an eventual refinancing of the Argentine debt.
“Celebrate and support the measures and results obtained by this new administration. The teams will continue working on the best strategy to continue supporting the country's efforts,” Caputo commented after the meeting.
The IMF would even have offered to expand the credit it gave to the country, but it was the Government itself that rejected the offer, since it considers that the loan could not be used for the purposes they intend: " The only way for us to take debt is if it is used to forever end the problem of the Central Bank, we do not need money for current expenses. We told them that, but they don't end up buying our project ," they remarked from the head of state's small table.
The current administration maintains conversations with the Fund and its officials highlight that the amount required to dollarize, Milei's maximum objective, is not much higher than that offered by the organization led by Georgieva, so negotiations continue.
Source:
El Gobierno le dará el control de los fondos fiduciarios al Ministerio de Economía y Luis Caputo sigue sumando poder
Javier Milei firmará en los próximos días un decreto para que Hacienda tenga el manejo de los fideicomisos, en medio de la pelea con las provincias. Las conversaciones con el FMI y el plan para dolarizar
www.infobae.com
February 28, 2024
Javier Milei will sign a decree in the coming days so that the Treasury has management of the trusts, in the midst of the fight with the provinces. The conversations with the IMF and the plan to dollarize
By Federico Galligani
The Minister of Economy, Luis Caputo, will have more issues in his charge (TÉLAM)
In the midst of the fight with the provinces over the debts they maintain with the Nation within the framework of different trusts, President Javier Milei will sign a Decree in the coming days to leave those funds in the hands of the Ministry of Economy, so Luis “ Toto” Caputo will continue to gain power within the Cabinet, while trying to resume dialogue with the governors.
The ruling party is convinced of putting an end to this tool that was used for many years by different administrations and that is used to finance different projects, with money outside the Budget approved by Congress.
According to what official sources told Infobae , in recent months an audit was carried out and it was discovered that there are “more than the 30 that were initially reported”, so the national authorities began to analyze how to disarm them.
“They are all black boxes of politics . That must be finished. That makes many people very nervous. There are many political agents who make a living from that,” the head of state himself stated in this regard, during a television interview.
The decision will be signed by Milei (AP)
At first, the Government studied the possibility of eliminating them directly, but here the first complication arose, since only nine of these trusts could disappear through Milei's signature, but for the rest of them a law is needed.
Likewise, at the Casa Rosada they highlighted that in many cases it is also difficult to end these financings, which are used, for example, for infrastructure works, since there are some initiatives that are in full development and with current contracts with different companies.
For these reasons, the decision of the Executive Branch was to opt for a way to, instead of eliminating them, control them and have management of the money circuit in question. They will achieve this with a single Decree that will be published in the Official Gazette .
The rule will establish that, as of its entry into force, the Ministry of Economy of the Nation will be the fiduciary of all existing funds , so it will have the management of them, always complying with the terms established in the original contract.
According to official sources, in this way the decision-making power over the money will be taken away from the current trustees, who are generally the vice-governor or some official of the benefited province , and given directly to “Toto” Caputo.
https://www.infobae.com/politica/20...as-mas-perjudicadas-por-el-recorte-de-fondos/
Technically, a trust is a legal instrument that involves three key parties: the settlor, the trustee, and the beneficiary. The first of them transfers certain assets or properties to the second, who manages them, in accordance with the terms established in the contract, to favor the latter.
In practice, the governors and the Nation used this legal mechanism, which has fewer controls, on several occasions to be able to advance with different projects - such as public works - that are not contemplated in the annual budget approved by Congress .
Some of those that already exist are, for example, the programs to promote some productive sectors or even the “Procrear” plan , aimed at building homes for the humble sectors, among many others.
The lack of agreement to eliminate trusts brought down the Omnibus Law (EFE)
Unlike the items found in the Budget law, approved every year by the Chamber of Deputies and the Senate, these funds cannot be modified or allocated to any objective other than the one established in the contract.
Likewise, the money in question is managed by officials who are designated for that task, but who do not have to submit to the same control mechanisms that other forms of financing require to guarantee their transparency.
The President has wanted to end this financing mechanism for several months and, in fact, the decision of some sectors of the opposition not to support the article that established its elimination was what led to the fall of the Omnibus Law , which, in turn, time, unleashed a judicial battle with the governors.
After the frustrated session in the Chamber of Deputies, the Government withheld 13 billion pesos from Chubut as co-participation, to settle part of a debt that the province had with the Nation for money that they received, precisely, through one of these trusts .
This triggered a confrontation between Milei and the Chubut president, Ignacio “Nacho” Torres , who presented a claim to the Court for the restitution of that figure in its entirety and obtained a favorable ruling from a judge in Rawson, although the discussion continues.
Caputo gains more power and continues talking with the IMF
Caputo with Kristalina Georgieva
For his part, this measure would give more instruments to Minister Caputo, who already absorbed a large part of the areas that were under the orbit of the defunct Infrastructure portfolio, after the departure of Guillermo Ferraro from the Cabinet.
The official is currently in Brazil, for the organization of the next G20 meeting and, in that context, he met with the managing director of the International Monetary Fund (IMF) Kristalina Georgieva .
According to what sources close to Milei detailed to this medium, the relationship with the international organization "is very good" and the staff was collaborative in agreeing to an eventual refinancing of the Argentine debt.
“Celebrate and support the measures and results obtained by this new administration. The teams will continue working on the best strategy to continue supporting the country's efforts,” Caputo commented after the meeting.
The IMF would even have offered to expand the credit it gave to the country, but it was the Government itself that rejected the offer, since it considers that the loan could not be used for the purposes they intend: " The only way for us to take debt is if it is used to forever end the problem of the Central Bank, we do not need money for current expenses. We told them that, but they don't end up buying our project ," they remarked from the head of state's small table.
The current administration maintains conversations with the Fund and its officials highlight that the amount required to dollarize, Milei's maximum objective, is not much higher than that offered by the organization led by Georgieva, so negotiations continue.
