Urged on by the fall in reserves at a key moment in negotiations with the International Monetary Fund (IMF), the Government seeks to agree a loan for US $ 6.5 billion with a Russian-Saudi fund, in order to swell the coffers of the Central Bank and take pressure off the dollar.
The proposal is part of the negotiations that the Foreign Minister began this week Santiago Cafiero and the president of the Chamber of Deputies, Sergio Massa, with the Foreign Minister of Saudi Arabia, Faisal al Saud, and that they would have a second round next week with a delegation from those countries.
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The shortage of dollars in the Central leads the Government to seek financing alternatives. During the government of Cristina Kirchner, the option was the swap with China. During these hours, progress is being made on a technically different proposal.
As indicated by the portal The nation, the US $ 6.5 billion would be contributed in two tranches in a period of three years, in exchange for bonds and illiquid holdings of the Central Bank.
The Government seeks to close the agreement with the IMF before the end of the year
While Cafiero and Massa advance with the negotiations with the Russian-Saudi fund, the Minister of Economy, Martin Guzman, seeks to finish defining the terms of the agreement with the IMF before the end of 2021.
Government entered injury time to close this agreement, which tries to reschedule the debt of US $ 44,000 million that it has with that multilateral credit organization. Occurs at times when the reserves Central Bank international accounts are located below maturities that the country has to face until March, according to different economists.
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The talks with the technical staff they sped up and they have a 20-day window before the break for the end of the year festivities in the Fund. Before Christmas, it is estimated, the executive board will meet of the organism.
In that instance, not only the fate of the agreement can be defined with the country, but the agency will also analyze the local request, and that was collected by the G20, to review the surcharges charged to countries such as Argentina.
For him December 22th, meanwhile, expires second installment of loan principal, for about US$1900 millones, which the Government assured it will pay with the “pandemic funds” issued by the IMF last August.
The wink of Cristina Kirchner and the support of the Pope strengthen the position of Martín Guzmán
In the midst of negotiations between the Government and the IMF for debt restructuring, Cristina Kirchner shared an extensive letter to address the issue. “It is the head of the Executive Power who carries out the negotiations in the exercise of its constitutional responsibility in this matter”Said the vice president, amid criticism of the media and the opposition.
In addition, he highlighted that, by the Law of Strengthening the Sustainability of Public Debt, it is Congress, which must then approve the eventual agreement and assured that “No one is talking about ignoring debts.” In the last hours, Mauricio Macri and Elisa Carrió had asked the Government to “honor the debts” of Argentina.
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Few days before, Guzmán had been designated by the Pope Francisco as a member of the Pontifical Academy of Social Sciences of the Vatican.
For the head of the Palacio de Hacienda, his link with Francisco is strategic in the face of the negotiations that Argentina has with the IMF. So much so that, after each of their meetings, the Pope issued statements in favor of a “significant reduction of the debt of impoverished countries.”
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Both situations are interpreted by the Government as an endorsement of the negotiations that Guzmán is carrying out with the Fund and could enter their final stretch in the last month of the year.