Government will seek to activate part of the swap during Alberto Fernández’s trip to China

Government will seek to activate part of the swap during Alberto Fernández’s trip to China

Official sources told this media that in addition to negotiating an extension of the swap, the Government will seek to reach an agreement with the authorities of the People’s Bank of China to activate a section of the swap in an extraordinary manner for a significantly lower cost than expected, which is around 6% interest. The objective of those who work on the agenda of Alberto Fernández’s tour is that the announcement can be made during the visit. Although they recognize that “the negotiations are not yet closed.”

Asked about the role of currency exchange, the president of the Central Bank of the Argentine Republic said: “The idea is that we can use it to sustain Argentina’s growth.” In the same interview that he gave to Perfil, Miguel Ángel Pesce maintained that he is also working “so that the trade imbalance that we have with China has a response through that financing.”

If the maneuver materializes, a point set forth in the principle in agreement with the International Monetary Fund would begin to be fulfilled. It is that the Argentine authorities and the credit organization agreed on the need to add additional financial support to “reinforce external resilience”. In this sense, it is not only aimed at credits from country to country, but also at the set of international entities that could add disbursements.

From the Argentine diplomacy they confirmed to this medium that during the visit of Alberto Fernández the financial addenda will also be signed to guarantee the continuity of the works in the Néstor Kirchner and Jorge Cepernic dams. At the same time, a series of investments in the electromobility sector will be announced: an electric vehicle manufacturing plant that Chery will install in the province of Santa Fe and initiatives focused on the production of lithium batteries.

In addition, last Thursday both countries signed the five-year investment plan, which is the first step to carry out more than a dozen large-scale infrastructure works. Among them, the fourth Atucha III nuclear power plant, the expansion of the Cauchari photovoltaic park, the extension of the railway network, the bridges from Chaco to Corrientes and from Santa Fe to Paraná, as well as a series of connectivity and fiber optic programs, among other.

Although in these cases the disbursements would be specifically to finance such initiatives, a large part of the payments could be made in pesos to local suppliers. Therefore, it is discounted that this inflow of dollars would also help increase the reserves of the Central Bank, which according to Minister Guzmán should grow by around US$5,000 million this year to comply with the guidelines with the IMF.

Source: Ambito

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