Alan Garcia

fajardos at SPAMix.netcom.com fajardos at SPAMix.netcom.com
Wed Aug 25 21:40:48 MDT 1999



Sam Pawlett wrote:

> [Former Peru President Alan] Garcia was incredibly corrupt . Last
> I heard he was living in Paris with his  stolen millions. Too
> many Peruvians would like to wrap their hands around his throat.
> Same goes for the rest of the leadership of APRA.

Sam, what Louis said about Garcia's initial stance toward the IMF and
the foreign debt as "progressive" is definitely true.  His proposal to
freeze debt payments at maximum of 10% GDP struck a nerve all over Latin
America at a time when the entire continent was mired in the worst
economic crisis it had seen since the 19th century and at time when IMF
emissaries were still virtual viceroys.

Garcia did in fact freeze debt payments at 10% of GDP, thus relieving
some of the pressure on the economy, which grew in his government's
first two years at something like 7% per annum.  What went quietly left
unsaid most of the time was that that was on debts contracted by
governments previous to his own.

The IMF and Washington were willing to swallow some of the medicine
Garcia was kicking back at them probably because they could not afford
to have any country default at that time, and because in order to keep
Peru's credit existent Garcia paid as usual on debts contracted in his
time.  Unfortunately there were many of those.

After pocketing suspected millions in graft Garcia left Peru.  He
currently resides in Venezuela, from where he tries to keep in the
news.  He is considering a run for Congress in 2000, but Fujimori passed
a law --known as the "Alan Garcia Law"-- which bans anyone who is under
idictement for crimes from running for public office.  It so happens
that Garcia is under idictment for misappropriation of funds, his role
in the Bank of Credit and Commerce International (BCCI) scandal, and
misuse of his post.  The Venezuelan government has refused to hand him
over.  Two weeks ago he staged a press conference and basically called
for a civilian-military front to oust Fujimori, with a coup if need be.
The idea was not well received in Peru.

- Juan









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