Opposition rejects Gov't use of BCRA reserves

Members of the opposition blasted the government’s authorization for the use of 7.5 billion dollars of the reserves of the Central Bank (BCRA) assigned to the payment of foreign debt in 2011 published in the Official Gazette, calling it a “shameful” measure.

The Civic Coalition and PRO caucuses stated in a communiqué signed by lawmakers Alfonso Prat Gay and Federico Pinedo that “the Federal Court has already condemned the use of reserves by decree. It is shameful that the President applies this method again,” referring to the conflict that involved the government and the opposition last year which lead to the resignation of Martín Redrado as the head of the Central Bank and the designation of Mercedes Marcó del Pont.

The lawmakers underlined that they had testified before the courts that “the use of reserves was going to generate inflation and that’s what happened,” and added that the new measure “would lead to 7.5 billion dollars of new inflation.”

As it did last year, the Kirchnerite administration will use part of the reserves of the BCRA in 2011.

Radical Party’s Senator Gerardo Morales also harshly criticized the government’s measure by assuring that “as a queen, the President decides how much she charges and how she expends the public funds,” and added that the Head of State “has separated 1 billion pesos in three days without any kind of control.”