Kulfas asked to “learn from what happened so as not to repeat experiences of indebtedness”

The Minister of Productive Development of the Nation, Matías Kulfas, asked “to learn from what happened, so as not to repeat disastrous experiences of irresponsible indebtedness,” and assured that the Government “restructured the debt and rebuilt the local debt market in pesos.” Through a thread of responses on his official Twitter account, the official replied to Guido Sandleris, former president of the Central Bank of the Argentine Republic (2018-2019), who accused him of being a “liar.” At no time did I say that debts should not be paid; unlike the government that Integrated Guido Sandleris that in less than three years took debt for more than US $ 100 billion and declared the default of debt that they themselves issued (including debt in pesos),” Kulfas wrote. “The government of Alberto Fernández restructured the debt and rebuilt the local debt market in pesos,” he added. Previously on his social networks, Sandleris quoted the minister and said: “If you owe 20 to your brother and 20 to the bank, and you only recognize that you owe 20 to the bank, in addition to being shitting your brother, you are a liar.”

If you owe 20 to your brother and 20 to the bank, and you only recognize that you owe 20 to the bank, in addition to being shitting your brother, you are a liar. https://t.co/M5kkqBC0tU — Guido Sandleris (@gsandleris)
April 23, 2022

Faced with the exchange, Kulfas replied: “Intra-public sector debt is different from private debt because if the State borrows from itself the probability of roll over is greater than if it places debt abroad, and the greater the probability of roll over of the maturities of a State, the credit rating improves.”

At no time did I say that debts should not be paid. Unlike the government that integrated @gsandleris that in less than three years took debt for more than USD 100 billion and declared the default of debt that they themselves issued (including debt in pesos). https://t.co/a73eLasfSD — Matías Kulfas (@KulfasM)
April 24, 2022

“For example, if the treasury places a bill in a trust fund to which it makes current transfers to finance a public policy, the probability of roll over is greater than if it places a bond in NY,” explained the minister and exemplified that when a family borrows in the same currency in which it receives its income (pesos) or a government in the currency it issues (there is no mismatch of coins), the probability of default is lower. “It is hard to believe that such basic issues remain unaunderstood by the economists of Together for Change; we must learn from what happened so as not to repeat disastrous experiences of irresponsible indebtedness,” he concluded.

Original source in Spanish