The Argentine President, Javier Milei, has taken a giant step today in his privatization policy. In full scandal for the fraud of cryptocurrencies $ LIBRA, the president has signed a decree to make the National Bank, a state entity … which is the largest financial in the country.
It is a half surprise, because on January 27 the institution itself had requested the opening of its capital to continue increasing the credit it offers to families and small businesses. In addition, he was on the list of public companies that Milei had pledged to leave in private hands.
In original plan it was to achieve that milestone through Congress. However, and since the ruling party only has 38 deputies in the Chamber, in April 2024 the Government Party – the freedom progress – had to take the privatization of Banco Nación from the content of its controversial omnibus law to achieve the favorable vote of Republican proposal (the formation of former president Mauricio Macri), the Radical Civic Union (UCR, Center) and we make Federal Coalition.
From there he began to take the alternative of opening the entity to investors making it a corporation. The operation has had the support of the Bank president, Daniel Tillard, who was in fact designated by Milei himself after his election.
As read in the decree that has been published this morning in the Official Gazette of the Argentine Republic, The State will be the main shareholder of the company, with a 99.9% participationleaving the remaining 0.1% to the Banco de la Nación Argentina Foundation. In turn, the share capital has been set at 1.6 billion Argentine pesos and the Ministry of Economy has been empowered to exercise management on behalf of the State and direct the capital opening process.
The justification of the measure is contained in the text of the decree, which states that «The current Autonomous Entity Regime limits the capacity of the Bank of the Argentine Nation to compete on equal terms with other entities of the financial sector, restricting access to new sources of financing and their ability to develop more dynamic and efficient trade strategies «.
From there, the text continues with promises of modernization of the legal and operational structure of the company, of greater flexibility in its management and adaptation to the best practices of the financial market, “incorporating more agile and efficient corporate governance mechanisms and efficient and A more professionalized and aligned administration with international transparency, efficiency and control standards, ”reads the Argentine BOE. The important thing is the mention that this “transformation” follows the document, “will allow optimizing the allocation of resources, strengthening its position in the market and enhance your financing capacityfor the benefit of their clients and economic development in general «.
An entity that is Argentina’s history
Founded in 1891 On the initiative of President Carlos Pellegrini, the Banco Nación was born from the bankruptcy of the previous State Bank as a means of resolving the then rampant financial crisis that afflicted Argentina, which lacked a credit muscle to finance the agro -export model inherited from the late nineteenth century .
In the following years the institution extended throughout the Argentine provinces and became the first financial one in the country. Thus an entity that until now had always been state -owned and that has starred in a good part of the great events of the country’s economic life began. As read on the bank’s own website, throughout the twentieth century it was Key to finance the rural world and allow Argentina to become an agro -export power.
In this sense, the attention to small and medium enterprises, as well as families and municipalities away from large cities – in a country of a vast geography – is one of the distinctive events that have characterized the history of Banco Nación.
According to data from the agency, the Corporation now has 721 branches in Argentina and four abroad (New York, Madrid, Montevideo and Santa Cruz de la Sierra), which give employment 17,403 people within the country and 182 abroad. In the financial aspect, it has 48 billion pesos in assets and another 33 billion in deposits and other obligations, in addition to a net worth of 15 billion.
#Milei #converts #historic #National #Bank #open #private #capital
