The cups down

Page 12 in Washington, DC

In the framework of the meeting of finance ministers and central bank governors of the G20 that takes place this week in Washington, Argentina found support for one of its main proposals to the International Monetary Fund (IMF). The forum, in which the Minister of Economy, Martín Guzmán, participates, asked the multilateral credit organization to review its surcharges. It is a central point in the negotiation that our country carries out with the credit institution for the loan granted during the government of Mauricio Macri.

In the official statement, the G20 also called for the creation of a new line of financing “to help low-income countries, small developing states and vulnerable middle-income countries.”

“We thank the IMF for its update on the surcharge policy and we look forward to following the discussion of this issue in the IMF Executive Board in the context of the interim review of precautionary balances,” says the document released after the meeting of headlines. of Finance and Central Banks of the G20 also held at the same time as the annual meeting of the international organization and the World Bank in the US capital.

The surcharges in the interest rate of the loans represent one of the main points that Argentina uses in its conversations with the IMF, while it tries to renegotiate the payment of the debt of almost 45,000 million dollars that the Government of Alberto Fernández inherited from the management previous.

This week, in a meeting with businessmen, the president referred to the negotiation. In his Twitter account, Fernández said that he conveyed to the businessmen that “it was essential to achieve the best possible agreement” and that the government’s objective is that it “be beneficial for all Argentines.” “We want to reach that agreement as soon as the conditions are met,” he added.

This Wednesday, in a press conference offered in the previous framework of the annual meetings, the managing director of the IMF, Kristalina Georgieva, said that the organization had not “made a decision” on the issue of flight attendants, which for Argentina represent a extra cost of about $ 900 million a year. Only for the first four years of grace, which Argentina is proposing as part of a new Extended Facilities Program for ten years, the amount of the surcharge would amount to 3.6 billion dollars.

Georgieva, who this week was ratified at the head of the IMF after being accused of benefiting China in an index while still heading the World Bank, held a meeting Tuesday with Guzman. The head of the organization said that she had a “very good meeting” with the Argentine official and that she hopes to continue “close work” to “face the challenges of Argentina in a lasting way and build a more sustainable and inclusive recovery.” The work, according to Georgieva at the conference on Wednesday, is based on “finding a path so that Argentina can have firm policies to induce private growth, generate genuine employment and focus public spending.”

On Twitter, Guzmán called the encounter with Georgieva “valuable.” “We hope that his leadership will continue to take steps that change the ethos of the IMF, leaving behind that shaped by the global financial power that contributed to a more unequal and insecure world for another that favors a sustainable development of the peoples,” he published.

The idea of ​​sustainability was also present at the G20 meeting, which asked the IMF to establish a new fund to shore up the stability of the balance of payments, especially given the risk that future pandemics and climate change may present. In the statement, the headlines called on the IMF and the World Bank “to work closely together to develop and implement” this financing.

In Washington, Guzmán met this Wednesday with the current German Finance Minister, Olaf Scholz, who has just been the most voted candidate in the recent elections of the European country to replace Angela Merkel, if he manages to form a government (if he achieves enough support parliamentary). The meeting with the German Social Democratic leader also took place within the framework of the G20 summit of ministers and central bank governors and was attended by the director for the Southern Cone before the IMF, Sergio Chodos, and the head of the Affairs Unit Internationals of the Ministry of Economy, Maia Colodenco.

It is not the first time that Guzmán and Scholz have a dialogue. They had already met in July in Venice, in another G20 meeting in which they had spoken about the Argentine economic scenario and the support of German companies investing in the country.

Although he is in the US capital, Guzmán sent a message to the IDEA Colloquium held at the Costa Salguero Exhibition Center in Buenos Aires. In his video, he was confident in the exchange policy that Argentina is carrying out and assured that there will be “no devaluation jump.”

The minister also insisted on the “essential” role of the state. “It solves issues that the private sector cannot solve by itself and that is what reflects how we manage the economic issue: betting on infrastructure, the generation of knowledge, the application of knowledge in production,” said Guzmán in his speech.

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