December 5, 2022

East Valley Times

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Argentina, which failed to run for the IDB presidency, is the regional bank’s main creditor

Ilan Godfajn is the new president of IDB AFP

Argentina, which lost its bid to retain the chairmanship of the Inter-American Development Bank (IDB), is the regional bank’s main creditor.

Vice-Chairman and Management Country by agreement with the new Chairman of the Bank, Ilan GoldfjenIt has the highest number of approved loans with USD 12,686 million, comfortably topping its peers

“The IDB Group Strategy with Argentina 2021-2023 is structured around four strategic pillars: (i) poverty reduction and social protection for the most vulnerable; (ii) economic recovery and Productivity Development 4.0; (iii) macroeconomic stability and effectiveness of public policies; and (iv) ) digital transformation as a cross-sectional axis of development. Each axis includes a diversity and gender approach; and environmental sustainability”, indicates the side of the bank led by Mauricio Claver-Caron until his dismissal,

In terms of active portfolio, the countries with the most projects are Brazil with 82, Argentina with 75 and Paraguay with 41.

A few days ago the Argentine government presented the nomination Cecilia Todesca Bocco for the position of President of the Regional Bank; He was an economist who served as Chief Adviser to the Central Bank in the administration of Mercedes Marco del Pont and Associate Vice President Santiago cafiero, among other public offices. The lack of consensus forced the government to withdraw its application yesterday.

Cecilia Todesca Bocco
Cecilia Todesca Bocco

In conversation with infobay, Todesca Bocco pointed out: “Argentina was the last to put forward the nominations because we prioritized dialogue to see if there was consensus. That didn’t happen and that’s why we delayed the nomination. The nomination of a woman was a very limited position. This is the first time in IDB’s six-decade history. I feel that this nomination is not an individual but a collective act, which sums up the work and power of all women in the region. Women have to compete equally in all fields, that will not happen in the region or in the IDB”.

“The other four candidates have very good applications, but Argentina made a strong bet: instead of talking about gender, it nominated a woman. In the work program we proposed, we incorporated one of the strong points of feminist economics. But apart from that, a structural vision for the region and its possibilities in this complex world. We have. Food, energy, mining, science and technology, a region of peace with a lot of talented young people. We are happy to host this debate. It seems like a healthy debate to us,” said the Argentine candidate, who came to the contest after the government failed to secure a seat. Gustavo BelizeThe former Strategic Affairs Secretary, meanwhile, was responsible for maintaining relations with the IDB.

Belize was the presidential candidate for the IDB
Belize was the presidential candidate for the IDB

Due to Belize’s disputes with Claver-Carone, it was extended by the President Alberto FernandezUntil the arrival of the Argentine minister, many loans were delayed Sergio Massa And Belize’s withdrawal from the government enhanced this movement. This enabled the government for the first time to open freely available credit to the USD 700 million added to the central bank’s weak reserves, and the bank accelerated the announcement of other loans linked to investment projects.

The amount approved so far this year for projects for Argentina is US$1,745 million and the Board of Directors will approve two more for US$600 million by the end of the year.

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After Argentina, in terms of the number of loans sanctioned, Brazil is with 9,288 million US dollars. Former head of the country’s central bank and current director of the International Monetary Fund (IMF) for the region, Ilan GoldfjenReplaced Claver-Caron.

Ilan Goldfajn, Brazil's candidate REUTERS/Adriano Machado/File Photo
Ilan Goldfajn, Brazil’s candidate REUTERS/Adriano Machado/File Photo

Strength of votes

The United States holds 30% of the board’s votes, donors (Europeans, Israel and others) 29%, Argentina and Brazil each 11% and Mexico 7%. In Washington, once the US Treasury decides on a candidate, donor countries are expected to support him, for which he will already contribute almost 50% of the total, compared to the other 50% distributed among the other 26 countries in the region.

Following Claver-Caron, Chile also issued its own note, approving loans from the IDB for US$945 million; That was about it Nicholas IssaguierFormer Finance Minister of Govt Ricardo Lagos Y Michael Bachlett. Eyzaguirre also held the position of Auditor of the Fund for Latin America during turbulent times with Argentina, while Kirchnerism refused to comply with the amendments of Article IV and handled public statistics, while Todesca Bocco went with the BCRA with Marcó del Pont. Chief Counsel.

Nicolás Eyzaguirre, Chile's candidate for IDB REUTERS/Rodrigo Garrido/File
Nicolás Eyzaguirre, Chile’s candidate for IDB REUTERS/Rodrigo Garrido/File

The Government of Mexico, nominated as the former Secretary-General of ECLAC, Alicia Barcina, He withdrew it to apply Gerardo Esquivel Hernandez, Deputy Governor of the Central Bank and prominent academician of his country. Mexico has a loan of USD 1,799 million in the IDB.

The fifth candidate is an economist Gerald Johnson Through Trinidad and Tobago, it has sanctioned loans of USD 521 million; Johnson was an IDB official and until recently served as a senior adviser to the Jamaican Ministry of Finance.