Wednesday, March 14, 2012

Lower House approves CB charter reform bill

In a general session, the Lower House passed a bill looking to amend the Central Bank's charter, which will be able to free up funds in order to pay off debt and cover the costs of the Treasury.

After more than nine hour, the bill was passed in a general session with strong support of the Victory Front and some other allied caucuses, by 142 in favour and 84 against it

The head of the Finance Committee, Carlos Heller, was in charge of initiating the debate and stated that the Executive Branch’s proposal is a “key tool diametrically opposed to the neoliberal model.”

The Nuevo Encuentro lawmaker said the bill allows the Central Bank to supervise and control the agents that participate in the system whenever it is considered. He added that the reform would help consider the employment and social equity.

Earlier, Civic Coalition’s Alfonso Prat Gay questioned the fact that the reform had not been in the pro-government or opposition agenda until it was requested by the Head of State on March 1.

Regarding the bill, the lawmaker admitted it is a good idea to extend the Bank’s objectives. To round up, Prat Gay, who headed the CB from 2000 to 2004, considered that the Executive’s aim regarding the reform is to “facilitate the foreign bondholders’ lives.”

Pro-government deputies hoped to push through reform of the Central Bank charter, which would see the 10 percent of reserves currently available to the administration “increased exceptionally to up to 20 percent over a period of 18 months,” in the next week.

The reform could be made into law by the end of the month.

Last week, in a rapid session held between Wednesday and Thursday, the Finances, Budget and Economy and Legislation committees heard a report given by Central Bank Governor Mercedes Marcó del Pont regarding the bill that proposes the reform of the entity, and the committees, comprised in the majority of Kirchnerite deputies, ruled in favour of the initiatives.