Is financial aid coming from the BRICS?

Is financial aid coming from the BRICS?

This WednesdaySergio Massa made an announcement of gravity for national finances: it was agreed with China the regime of commercial exchangewhich will allow to use yuan for the sale of goods. Besides, the Argentine delegation in the Asian country reviewed the investment possibilities in mining and lithium. However, the day of Thursday is constituted as fundamental: there will be a meeting with Dilma Rousseffpresident of the bank BRICS.

The meeting between Economy Minister and the former president of Brazil, which will take place in Shanghai at 9 a.m., will seek to analyze the possibilities offered by the statute of the New Development Bank (NBC)through legal or administrative instruments, to provide financial help to the Argentina and can strengthen the reserves of the central bank.

The main alternative found by those involved in the negotiations has to do with finding one of the five member nations of the BRICS make a capital contribution to the organization so that the NDB part of this fund can be allocated to a specific development project for a nation that is not part of the bloc, which would allow the Argentina alleviate the financial pressure to the reserves of BCRA.

In addition, there is a bilateral proposal -already discussed between Alberto Fernandez and Lula Da Silva– between Brazil and Argentina who was looking for him NDB offer guarantees of its reserve requirements so that Argentine companies can import Brazilian inputs without affecting the reserve dollars.

What has the Argentine delegation in China announced so far?

The delegation headed by Economy Minister, Sergio Massaformalized the regime of commercial exchange that will allow companies to use yuan without the intermediaries that are used in this type of operation, such as the purchase of dollars with the Chinese currency or the previous cash deposit with liquidation.

In addition to encouraging exports in yuan and will contribute to the strategy of ‘de-dollarize’ economic operations, will affect the protection of reserves for avoid fraudulent maneuvers of triangulation with Uruguay and USA.

At a business meeting held this Tuesday, Gezhouba Group promised to grant US$524 million to complete a total of US$1 billion by July of this year, in order to carry out the second tranche of the Santa Cruz River Dam Project.

In Buenos Aires territory, the expansion of the La Ferrere sewage treatment plant, for US$70 million. They have the same intention with the sewage treatment plant, located in the Buenos Aires district The Jaguel. On another level, next to State Grid agreed to motorize the Electric Power Transmission System, which will develop high voltage lines in 24 municipalities of the Conurbano. The investment amounts to US$1.1 billion.

In the presentation with energy businessmen this Wednesday, the announcement of an investment of 2,700 million dollars from the company was finalized Gangfeng Lithiumthe first producer of lithium and derivatives, which expects a production of 74,000 tons of lithium carbonate.

Subsequently, Massa met with company officials Tsingshan Holding Groupwith whom the progress of the lithium extraction project was analyzed, Salar Centenario-Ratoneswhich has an estimated investment of 770 million dollars.

Finally, the Argentine authorities advanced together with the board of Tsingshan Holding Group on the details of the financing of two projects of lithium that are developed together with the French mining company Eramet for 800 million dollars, in the procinabolanta plant of Solvay soda and chlorine in Jujuy.

Source: Ambito

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