May 31, 2023

East Valley Times

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G20 in Rome: Alberto Fernandez meets Merkel, Macron and Georgie to find a way out of talks with the IMF

Alberto Fernandez and Fabiola Janes arrived in Fiumicino to attend the G20 summit in Rome.

(Rome Special Envoy). Alberto Fernandez A raid begins today in Rome to gain political support, allowing it to close the extended facilities deal. International Monetary Fund (IMF), after a few months of the expiration of a capital allocation, the country can not compensate with the country’s public reserves. Central Bank.

Negotiations with the IMF are at a critical juncture, And the President seeks a diplomatic shortcut that allows it to change agreed financial conditions Mauricio Macri With management Donald Trump.

If the conversations do not succeed, Argentina may fail again in funding.

Alberto Fernandez will maintain a bilateral relationship Angela Merkel, President of Germany, at the conclusion of the first consultative session of the G20 Conference in Rome. The meeting will take place in La Noula, a conference center designed to receive world leaders, and will begin at 9 a.m. Argentine time.

Santiago Kafiro with President to be President, Martin Guzman – Minister of Economy, Gustavo Belize – Secretary of State for Strategic Affairs And Jorge Arcuvello, Argentina’s Ambassador to the United States. Alberto Fernandez formed a good personal relationship with MerkelAfter 16 years of strong political influence in Germany and the European Union, he will step down from the Foreign Ministry in the coming months.

The head of state is proposing to reduce the additional fees for the $ 44,000 million loan that Macri made when he occupied Gaza Rosada. And Germany’s position is crucial to achieving that financial goal, which would avoid paying a figure close to $ 1,000 million – each year – to the IMF.

Until now, Berlin disagrees with the reduction of flight attendants and Alberto Fernandez tries to work within the intricacies of Dutonic corporate power. The current German representation in the IMF is owned by the Central Bank and in 2022 the site will be reclaimed by the Chancellor and its foreign relations.

Alberto Fernandez meets Merkel again (REUTERS / Annegret Hilse)
Alberto Fernandez meets Merkel again (REUTERS / Annegret Hilse)

In this perspective, The president hopes that Germany’s opposition to reducing the number of flight attendants will disappear in the coming months when a formal proposal comes from Argentina. This proposal has already been analyzed by the United States and Japan. Two countries weighed in by the International Monetary Fund, And the answer was negative.

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Merkel meets Olaf Scholes, Current finance minister and his potential successor in Berlin. Scholz and Guzmán have known each other for many years, and this political and personal relationship will greatly contribute to the negotiation strategy with the IMF. In fact, Alberto Fernandez may ask the future chancellor of Germany to approve his proposal to reduce the extra fees for the loan Macri received. Christine Lagarde.

The government’s diplomatic attack on Merkel-Scholz did not end with the flight attendants. The head of state seeks consensus to ensure that the final G20 report contains a passage recommending that the IMF create a recession fund. Aimed at facilitating the economic and financial restructuring of poor and middle-income countries affected by the epidemic.

German Chancellor and his potential successor acknowledge the geopolitical implications of the recession fund, But they are defined by the rules of the Central Bank of Germany and the European Union. That means they will not oppose the possibility of opening a new credit line at the IMF. To support future resilience funds, they would not be in a legal position to contribute their exclusive drawing rights (SDR).

Alberto Fernandez and Emmanuel Macron during their last meeting in Paris
Alberto Fernandez and Emmanuel Macron during their last meeting in Paris

After the audience with Merkel, Alberto Fernández will move into Cafiero, Guzmán and Beliz L.In Novola To attend a conference with French President Emmanuel Macron. The head of state and his European colleague share a very active WhatsApp And they have ideological coincidences about climate change, the need to formalize a political change in Venezuela, and the importance of accessing vaccines in the face of the new onslaught of COVID-19. “

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Alberto Fernandez considers Macron a partner in negotiations with the IMF. Check it out in Rome The French president supports the final G20 report, which recommends cutting additional tariffs and creating a recession fund.

If Macron turns his writing in his conversations with Alberto Fernandez into a geopolitical decision, there is no doubt that France will support Argentina’s two proposals in the G20.

During tea in Rome, The president and Crystalina Georgieva will hold face-to-face talks, which have already taken the form of a political platform. Two weeks before the legislative elections, Alberto Fernandez made his election speech difficult. And the IMF has turned on all the lights in the face of an unexpected speed change.

In his exclusive talks with the head of state and in his meetings with Guzman, The Managing Director of the Fund heard that loans are always valued In negotiations not exceeding December 31, 2021, the agreement will be based on a sustainable plan.

Alberto Fernandez and Kristalina Georgieva during their last meeting in Rome
Alberto Fernandez and Kristalina Georgieva during their last meeting in Rome

Now, Georgia is hearing a very aggressive speech from his Minister of Economy and La Campora, Alberto Fernandez. This creates a lot of uncertainty in the International Monetary Fund group. The President is aware of that mindset, and his main purpose during the conference is to get approval Argentina wants to pay without mentioning the adjustment plan.

The Managing Director complies with the IMF’s Institutional Rules and complies with the debtor country’s requirements – in this case Argentina – a plan that allows for the refinancing of contracted debt. The terms of that plan – regular, normal and normal – collide head-on with the closed economy, It includes price controls, multiple exchange rates, stable output, high inflation, fiscal deficit and rate freeze.

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Namely: The IMF will close an agreement with Argentina if it implements a traditional plan This allows the country to refinance the last stand-by loan of $ 44,000 million in a sustainable way. Alberto Fernandez agrees to use a standard plan, But it does not accept the measures recommended by the Fund to change the ideological matrix of the current economic plan.

In this perspective, Alberto Fernandez will share the official photo with Georgia, after which everyone will return to his hotel without much progress in negotiations. There is only one specific and definite fit: The need for it to be included in the G20’s final document is a clear paragraph of recommendation to the IMF to create a recession fund for poor and middle – income countries.

Before the meetings with Merkel, Macron and Georgia, The head of state will take part in the first discussion of the summit, which aims to review the current global state of the economy and health. At the time, Alberto Fernandez and Joseph Biden will have the opportunity to meet in person and have an informal conversation.

President Pita believes And is committed to deepening diplomatic relations with the White House, which will formalize an official visit to Washington only if it is certain that the Pink House will sign a permanent agreement with the IMF. It will deny China technology, nuclear and financial deployment in Argentina in all possible ways.

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