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Goldfajn does not abandon the race for the IDB and will seek support from Lula

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Goldfajn made it clear that he intends to continue in the race, but only if he is also the president-elect’s candidate. And as far as possible from Mercosur, which includes the votes of Argentina, Uruguay and Paraguay. From what is known, until now he will have to compete against two already certain applicants: the Ecuadorian economist Augusto de la Torre and the head of research at ECLAC, the Mexican Alicia Bárcenas; two “challengers” on the side of Goldfjan’s candidacy. The Brazilian has a main support that would put him in an expectant position. In the brief time that he led the Western Hemisphere area, he was able to establish solid contacts with the United States and the Joe Biden administration, which would guarantee him a 30% support of the board. The support would also be guaranteed in the face of the nominations of Bárcenas and de la Torre, two unlikely candidates for the White House, which makes the Brazilian the favorite; Barring some surprise nomination, the one that to be successful would have to have more ascendancy over the United States than the solid (in his contacts) Goldfjan. If he also obtained the endorsement of Brazil and Uruguay and Paraguay, he would reserve 45% of the votes. For his part, Goldfajn already did his homework. He contacted Biden’s treasury secretary, Janet Yellen (with whom he established a good relationship from his IMF position), who gave him virtual support. It is not yet known what he will do for Argentina. Since the beginning of the Goldfajn crusade, the government of Alberto Fernández has certain resentments with the request. It so happens that the Brazilian has been the technical manager of the Argentine case before the IMF since February, from where he pressured the government for tough fiscal and monetary goals, in addition to being one of the main promoters (at least in local eyes) of the application of the highest possible interest rates (4.01% per annum) for the current Extended Facilities; instead of the request of the then Argentine Minister of Economy Martín Guzmán for a percentage of 2.04%. He always made it clear to the Argentines Goldfajn that he defended the possibility, but that the refusal came from the IMF board; something that the locals never believed. On the other hand, for pure and simple Kirchnerism, supporting a Fund technician to reach the IDB is, directly, heresy. The second resentment that appears in Buenos Aires to vote for the Brazilian is the patronage of Bolsonaro, with whom It seems that Argentina has already broken all the bridges when Alberto Fernández traveled in person to hug Lula. In any case, the Casa Rosada will wait to find out whether or not Goldfajn has the endorsement of the president-elect and then present a position. Argentina has 11.3% of the votes in the entity, a level that cannot prevent the victory of the Brazilian; but if you complicate it. There is another factor to take into account from Buenos Aires. Goldfajn developed a very good relationship with Sergio Massa during the negotiations with the IMF that led to the approval of the goals for the first semester of the current Extended Facilities. He also knows the Minister of Economy, that if the current managing director of the Fund rose to leadership of the IDB, he would have the signature of many of the credits to be granted. For example, if his arrival occurred this year; The Brazilian would have the pen to close the granting of the second line for US$500 million of the freely available loan that, as this newspaper advanced, in the first quarter of 2023 the entity’s board of directors would release to complete the line of US$ s1.2 billion total. This money is enabled to finance imports for exporting industrial sectors, and from the Treasury Palace it is considered key to be able to sustain the supply of foreign currency. It is assumed that in the negotiations for the support of the Brazilian the issue would be on the table.

Source: Ambito

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