Government negotiates with Paris club to defer payment

Government negotiates with Paris club to defer payment

Incidentally, and whenever the state of health permits it, the President He plans to travel to France in June to meet his French counterpart.

After reconsidering debt with private bondholders, the country has approved its short-term maturity with these creditors. However, this year there will be Debt maturity with international lending organizations exceeding US $ 10 billion (5.1 billion with the International Monetary Fund, With 2,400 million Paris club And 2,900 million with the rest of the organizations).

With these commitments, Argentina faces the situation Lack of reserves This makes payment difficult. According to various estimates by private advisors, the Central Bank has a net reserves of about US $ 4,000 million.

There was two good news Government This week. In this case, the self President talks with World Bank chief David Malpas on Wednesday Where he confirmed that the unit would finance projects in the country for $ 2,000 million.

VIDEOCONFERENCE_PA.O.mp4 with the holder of the World Bank

On the other hand, the Managing Director of the International Monetary Fund, Kristalina Giorgiva, Announced that the organization is pursuing a $ 650,000 million (Special Drawing Rights (SDR)) study to expand its capital.. In practice, it would be possible The country’s foreign exchange reserves amounted to more than US $ 4,355 million.

This news was received with satisfaction at Casa Rosra, but has been submitted A time problem. The extension of the SDR will only be analyzed by the Fund Board in June and must then be approved by a majority of member states.

In other words, this reinforcement in the country’s foreign reserves will occur after payment to the Paris Club, hence the desire to expand.

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No discrepancies

“Alberto and Christina see each other at least once a week and talk all the time”, Confirmed Limit An important ally of the President.

The president and his vice president, Christina Fernandez de Kirchner, both agree on a foreign debt negotiation strategy. On Wednesday, in connection with the talks with the IMF, the Vice President said, “We should make an effort, the ruling party and the opposition, to give us another interest rate for a longer period and on a loan: others contracted.”

The President and Vice President agree that Argentina must have a longer duration and lower interest rate to fulfill its commitments, especially in the context of an emergency arising from the epidemic. They also say that these are loans which this government has not accepted.

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In front of everyone

Anyway, IMF gets extension of payment terms It is not an easy task. The agency has structured its loans with a maximum of 10 years (extended facilities program). In this sense a decision must originate in the political action of the member states, then be studied and endorsed by the technical staff and approved by the member nations, as the IMF does not make loans in line with the applicants.

This decision is for wednesday To leave the Lima group to Argentina (created in search of a peaceful solution to the crisis in Venezuela), Resolution that some regions interpreted as a departure from United States interests. The government denies this version and they limit themselves to point That “this group has been on for a long time.”

“The important thing is to keep in mind that Guzman works closely with Alberto (Fernandez) “They live in Casa Rosa. In other words, the Minister of Economy is aware of the president’s decisions that affect his management and – he confirms – no differences in how the foreign debt is negotiated. Huh.

He is worthy in the presidential atmosphere “Affirmative” Add the conversation he had with Giorgiva to the head of Palacio de Hacienda (without giving details) “All objectives were achieved” That meeting was on the agenda.

Meanwhile, Washington sources said that in the meeting, Minister Guzman said it was serious “Argentina’s political situation makes it difficult to approve a program that does not involve a long period”.

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