The bloc of emerging countries sent an invitation to Sergio Massa by the end of the month. The bank led by Dilma Rousseff could provide the guarantees requested by entities from the neighboring country.
The Government accelerates negotiations with the BRICS bank to unlock the arrival of financing for imports from Brazil. They aim for the block of developing countries to grant the guarantees requested by the financial institutions of the neighboring country to grant Argentine importers a period of more than 360 days. Specifically, the relief could reach US$6,000 million, they explain in Economy. The organization’s board of directors invited Minister Sergio Massa to participate in a meeting that will take place in China at the end of May. Loud conversations with Dilma Rousseff and negotiations in Beijing.
The main mission of the economic team at this time is to get the more than US$10,000 million that the drought subtracted from the annual export schedule. Some US$5,000 million will be covered by the increase in amounts and use of the current swap with China. Operations with yuan with the second commercial partner began to speed up and they assure that this will bring a first relief for the Central Bank’s reserves.
The other great Argentine commercial red arises from the bilateral balance with Brazil. With variations according to the year, the deficit is usually around US$3.5 billion. In conversations that have been going on for several months, different options have been considered so that the government of Lula Da Silva grants a mechanism that allows Argentina to have a greater financial margin and the exporters of his country to recover the market lost to the Asian giant.
At this time, the firmest option is for the powerful National Bank for Economic and Social Development of Brazil to grant financing for more than 360 days for sales from that country to Argentina. The mechanism is complex. The financial entities of the neighboring country have regulations that, no matter how much political affinity there is between the leaders, must be complied with.
Weeks ago, President Alberto Fernández held a bilateral meeting with his counterpart Lula Da Silva. In this framework, the space was also opened for an extended meeting that included the officials of the front page of the two cabinets to try to unblock the situation.
A minister present at the reserved meeting told Ámbito that Lula Da Silva decided to communicate at that moment, in front of the Argentine delegation, with the former president of that country, Dilma Rousseff, who currently leads the New Development Bank, better known as “the bank of the BRICS”.
The focus of that conversation was on the financial institution of the block of developing countries to collaborate by guaranteeing financing for Argentine imports. In the Government they explain that this is precisely one of the obstacles due to which the initiative has not yet materialized.
In the Argentine industrialists there is expectation. They believe that this operation could speed up the authorization of permits to import. The interest rests especially in the automotive sector where the level of complementarity is very high. Brazilian auto parts manufacturers also welcome the agreement. Even a local businessman who traveled to Automec in São Paulo at the end of April was able to corroborate the excess stock that manufacturers are eager to locate.
Source: Ambito
