In it, they remarked to the president that “common and shared principles in the Americas should guide us to find a quick and effective solution for Argentina.”
Six presidents from different Latin American countries they sent a letter to the president of United States, Joe Bidenso that support the Argentine negotiation in the International Monetary Fund (IMF). The Minister of Economy, Sergio Massacontinues negotiating the details of the reformulation of the current Extended Facilities program and the head of the Palacio de Hacienda is expected to travel to Washington to sign the new agreement in the coming weeks, although not immediately.
The letter is signed by Luiz Inacio Lula da SilvaPresident of the Federal Republic of Brazil; Luis ArcePresident of the Plurinational State of bolivian; gabriel boricPresident of the Republic of Chili; Gustavo PetroPresident of the Republic of Colombia; Andres Manuel Lopez Obradorpresident of the United States of Mexico and Mario Abdo BenitezPresident of the Republic of Paraguayan. In it, they remarked to the US president that “the common and shared principles in the Americas, around democracy, human rights and social inclusion should guide us to find a quick and effective solution for Argentina”.
“Argentina has asked the IMF a review that allows us to overcome the difficulties presented by this atypical year and that it serve as a bridge until various ongoing projects mature, particularly those related to energy and mining, which will have a significant impact on the country’s balance of payments,” the six presidents write to Biden and assure him that they believe “that it is possible to find an agreed solution that allows Argentina to navigate the situation in which it finds itself”.
The leaders argue that “It is not viable and neither is it desirable that the demands that do not duly consider the change in circumstances submerge Argentina in an unnecessary crisis that interrupts the ongoing recovery” and adds: “The IMF inflexibility to review the parameters of the agreement in the context of the described drought runs the risk of turning a liquidity problem into a solvency one”.
“The countries of the region are closely following the situation in Argentina, as a result of the combined effect of the over-indebtedness in the previous administrationthe pandemic, the impact of the war in Ukraine and the consequences ofIt is the greatest drought the country has suffered in the last century”detailed the presidents before giving a sign of support to the Argentine government that “has been working hard to deal with to the exceptional debt contracted with the International Monetary Fund (IMF)” and completed: “This is the largest loan granted in the history of the organization, which had the endorsement of its main shareholders, for an amount greater than 1,000 percent of its share”.
In this sense, the six presidents assure that “without prejudice to the aforementioned exceptionality, theto Argentina’s will to honor its multilateral commitments has been unquestionable”. “Since the approval of the new program with the IMF that was duly approved by the National Congress, Argentina fulfilled the agreed goals and consolidated a growth process, employment generation and fiscal ordering”highlighted the task of the ruling party.
In the letter they describe to Biden that The drought “has caused a loss of foreign exchange of more than 20% of the country’s exportswith a severe effect on international reserves” which “has complicated the normal functioning of the exchange market, reduced tax resources and had an impact on inflation”. In addition, they indicate that “extraordinary circumstances warrant extraordinary responses, as extraordinary as the over-indebtedness caused by the IMF loan which is one of the main causes of the current situation”.
“We seek a solution that allows the growth of Argentina, the generation of employment and the increase of its exports. All of them are necessary conditions for the country, in turn, to be able to face the maturities of the aforementioned loan,” they remarked to President Joe Biden.
Source: Ambito
