What is a financial park?

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A playpen Es, en términos generales, una restricción impuesta por el gobierno, en la que las persons no tenían libre disposición de su efectivo de cuentas a plazo fijo, cuentas corrientes y cajas de ahorros. Pero, ¿cuándo ocurrió? ¿Para qué sirve? A continuación, responderemos algunas de las preguntas más importantes para entender the financial corralito.

Background of a financial park

On the third day of December 2001, the radical government of the official Fernando de la Rúa made a corralito that lasted practically 1 year. This has taken place in the Latin American country of Argentina. And the truth is that this measure is something that was absolutely radical in the eyes of the people, which is why the president of La Rúa was forced to resign from his position, which in turn led the country to a situation of dissolution and instability both social and political; crisis that lasted several years.

The target de esta medida se explicó como deficiente prevent cash from leaving the banking system; As a result of this dynamic, the banks would not undergo decapitalization, which would undoubtedly lead to a banking panic crisis, making it possible for the banking system to collapse completely.

Although this measure was the one that has been taken, some other options that could have been implemented to avoid the decapitalization of banks; one of them was mentioned by the Minister of Economy, Domingo Cavallo; who proposed that encouraging the population to make greater use of electronic means of payment would result in an active economy in which the population would have access to the movement of their funds. This measure would have prevented government tax evasion and, at the same time, would have made the population trust the banking system more and deposit more funds.

However, the term corralito Fue acuñada en 2001, y fue realizada por el periodista con especialidad económica Antonio Laje. Este hecho ha tenido lugar cuando estaba a cargo de una columna económica en el entonces programa Daniel Hadad. Este event fue muy importante en el desarrollo de los hechos de esa época, y es que en esto el hecho de que el gobierno restringió significativamente las libertades más básicas de los usuarios del sistema bancario, entre las que incluye hacer uso de su propio dinero. en cualquier momento, lo que provocó descontento entre todos los usuarios.

How did it happen in the park?

This fact begins to happen when the Withdrawal of funds, due to the fact that until November of that year the withdrawals amounted to more than 67 billion; It is these data that give the government the guideline to make the decision to build the corralito. But what did it consist of?

Specifically, this event consisted of a series of prohibitions, prohibitions that focused on the activities of two groups of people, First we find the prohibitions for the public and second we find the prohibitions for banks, let's see what each of them consists of.

As to prohibitions for the public We found that users could not make withdrawals that exceeded 25 pesos or 250 dollars, the limit amount per week. And this being prohibited to all accounts that were in the owner's name, so it did not matter if he had an account in this or that bank, because a week he could only enter $ 250 from his account.

The second prohibition is that of make transfers abroadThis applied only to common users, since these transactions were allowed for those that corresponded to foreign trade, as well as payments of expenses or withdrawals that were made once abroad. From this dynamic it was tried that the national bank did not run out of funds with which to operate.

Now I'm going to talk about prohibitions for financial entities, First, let's refer to the fact that they were not allowed to carry out active operations in pesos, apart from this, alternatives to carry out movements with currencies were prohibited. At the same time, these organizations were not authorized to conduct arbitrations directly or indirectly; Except for the situation in which the transactions were converted to dollars, as long as the debtor consents to said movement.

Otra de las prohibiciones es que no se pueden ofrecer tasas de interés superiores a lo que equivalen los depósitos, ya be en pesos o en dólares. En este punto además es importante mencionar que las operaciones que estaban vigentes podrían convertirse a moneda extranjera, siempre que no se tomara en cuenta la legislación de convertibilidad. 23,928, lo que conlleva que las transacciones eran controlables de una manera mucho más fácil.

The last of the prohibitions applicable to entities Es el que no les posibilita cobrar comisión alguna por ninguna conversion de moneda. Siempre y cuando las operaciones se realicen mediante las cuentas abiertas en organizaciones financieras. Esto implicó muchas pérdidas para las organizaciones financieras, lo que demuestra que los únicos descontentos con los resultados de esta decisión no fueron los usuarios, sino que además las organizaciones financieras se vieron seriamente afectadas como resultado de la decisión de aplicar el corralito.

Objectives of the financial corralito

Although the main purpose of this measure has already been outlined, let's take a closer look at how the events were planned. The first point to consider is that you wanted to avoid deposit leakage into the banking system, this leak was the result of an event in which users lost confidence in the banking system. In the event of such a flight of capital, then there was speculation about a feasible exit from convertibility, a situation that would not be favorable for the banking system and for the financial system in general.

So, taking into account this information and these speculations, then the decision is made to execute a very desperate play, the corralito, through which it was planned to avoid said massive withdrawal of funds.

Another goal they had in mind had to do with maintaining a Cash flow so that the economy did not stop due to people not having access to their money, but it was thought that the cash flow was maintained within the banking system through the use of debit cards. Given all these government goals, not just the acceso de Username sin costes a sus fondos, but many of the users were also forced to obtain cards to enter these funds, even though they could not have the cash if they could obtain goods through bank transactions.

Therefore the objective that the government was pursuing was keep the banking system stable, and as mentioned in previous paragraphs, this was just one of several possible options that could be considered to keep the flow of money running within banking organizations.

Consequences of the playpen

One of the main consequences of the playpenIt is because it was a decision that was made abruptly, so there was no response time for those involved to adapt to the situation. As a consequence of this abrupt change in the system, the country's monetary liquidity was seriously damaged, since a large part of the economic movement was interrupted by the lack of liquidity.

Therefore, both trade and credit were paralyzed, which caused the economy to stagnate significantly. Part of this is because a percentage of the population owes its sustain the informal economyAs very few people had enough cash to make daily purchases, which seriously affected the lifestyle of people, both customers and sellers of said system.

The most serious effect was carried out in the neighboring country of Uruguay, and is that the population of Argentina has had the idea of being able to withdraw their funds in the banks of the neighboring country, however, this event caused the crisis to exist. in 2002 Banco de Uruguay, one of the most notorious in its history, and caused by the Argentine government.