Civil Code reform doesn't include 'pesification,' Lorenzetti

The president of the Supreme Court of Justice Ricardo Lorenzetti, said today that the sanctioning of a new Civil and Commercial Code could push Argentines to “sign contracts in pesos,” detailing that the recent reforms made to the codes did not actually involve ‘pesification.’

The statements were made during a radio interview today where Lorenzetti gave his opinion on the economic stance of Argentines.

“Argentines sign contracts for renting in dollars, we buy dollars thinking about everything that has happened in the past, thinking about the fact that we live from crisis to crisis. Fear of "pesification" is normal; it is something you don’t find in other stable economies.”

According to the Justice, “pesification means what Argentines went through in 2001 and 2002. The legislation in force says one thing, but an emergency law was dictated in an economic crisis that says instead of giving a thousand dollars to those who deposit a thousand dollars, they were given a thousand pesos, which in addition were devalued.”

Lorenzetti furthered that the changes would reach the security boxes in the bank “the objective is to better protect people who deposit their savings in the bank.”