Batakis will take the place of Martín Guzmán, who resigned abruptly on Saturday through Twitter, after working in the management of fiscal and financial relations with the provinces from the Ministry of the Interior, which he augurs great support from the governorsparticularly from the ruling party, according to the local press.
Among its first tasks is the renegotiation of the debt with the Paris Club, the definition of the new electricity and gas rates, and promoting measures that continue to slow down inflation, which, according to estimates, will exceed 60% during 2022.
Batakis will have to reschedule his schedule to travel to the French capital at a time when debt maturities with European states are approaching and a new negotiation is required to reschedule payments.
The meeting with the Paris Club was scheduled for next Wednesday, July 6, with the aim of renegotiating new interest rate conditions and extending payment terms.
The resigning Guzmán had scheduled his arrival in France this Monday to close an agreement that would restructure a volume of debt amounting to 2,400 million dollars with the Paris Club, whose capital payments were deferred until 2024.
The agreement with the International Monetary Fund reached by Guzmán (refinancing of a record debt of almost 45 billion dollars) and its fulfillment is key for the Paris Club, which had already shown signs of cooperation with the country last March.
Days before the agreement with the IMF was approved, Guzmán and the president of the Paris Club, Emmanuel Moulin, had agreed to a new extension of the understanding reached in June 2021, which granted more time to face a new restructuring, in exchange for partial disbursements in interest, and a postponement in the negotiations until the end of June.
This agreement also included financial guarantees from the Paris Club in support of the Extended Facilities program. which has a duration of thirty months, allowing Argentina to secure the financial sources identified in the agreement with the IMF.
The financial guarantees granted establish that, during the term of the program, Argentina will make partial payments to Club members in proportion to those made to other bilateral creditors, in accordance with the terms established in the June 2021 understanding.
For now, the official agenda of the new Minister of Economy will have to face this planned trip and renegotiate the payment agreements that had been tacitly agreed upon by the former minister and the leaders of the credit international.
Source: Ambito
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