By contrast, surcharges continue to weigh particularly heavily on low- and middle-income countries. Even about Ukraine. According to official sources told this newspaper, the new strategy will be to show the contradiction of a world that condemns the Russian invasion in diplomatic terms, but that does not produce any changes in the international financial architecture to alleviate its consequences.
In the Ministry of Economy, they explained to this medium that due to the surcharges today, the International Monetary Fund is being paid an interest rate 50% higher than that of the current credits with China or the Inter-American Development Bank (IDB). ) and 30% higher than that paid to the Paris Club. “This is difficult to understand, when the IMF is supposed to be the lender of last resort”point near Massa.
Next week, a technical mission will arrive in Washington and will once again insist on the revision of this policy. In the G20, President Alberto Fernández garnered support. According to diplomatic sources, the French president, Emmanuel Macron, promised to support the Argentine initiative. In any case, reaching an agreement in the board of directors seems somewhat more complex. Germany, the Netherlands and Japan, among others, still show a rigid position on the matter.
the cost of war
Massa assures that the war between Russia and Ukraine cost Argentina, through the distortion of key prices of the economy, some US$5,000 million this year alone. On his last tour, he told the head of the International Monetary Fund, Kristalina Georgieva, through a document that she hand-delivered to him personally.
Ámbito had access to the text titled “Effects of the War in Ukraine on Argentina”. The executive summary of the nine-page survey notes that “the war in Ukraine caused important changes in the world economic scene, which generated a negative incidence of US$4.940 million in the trade balance attributed to a generalized shock in international prices ”.
The study prepared by the Secretariat of Economic Programming, details that “the value of fuel imports increased to u$s5,756 million when the projected before the war was u$s1,999 million, this meant a net increase of u $3,757 million”. As for the agro-export complex, despite the rise in prices, he remarks that “net exports were US$617 million above those projected before the war.”
The document also describes increases in the prices of fertilizers, changes in the input-product ratio of the exportable basket, and increases in freight costs: “Finally, the cost of shipping exports suffered an increase of US$1.8 billion relative to pre-war forecasts. The total impact of the increase in international prices due to the conflict in Ukraine was estimated at US$4.940 million”, explains the text that Massa approached Georgieva and who will be at the negotiating table with the Fund.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
