March 26, 2023

East Valley Times

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“It is very important that Argentina maintain the successful trend of the last few months,” said Kristalina Georgieva after meeting with Alberto Fernandez.

Alberto Fernandez meets Kristalina Georgieva

(Special Envoy to Bali, Indonesia) Alberto Fernandez He met the Managing Director of the International Monetary Fund (IMF). Kristalina Georgieva. After the bilateral meeting, the IMF representative highlighted the economic policy implemented by the government in recent months. “It is very important for Argentina to maintain this winning streak” he emphasized at the end of the meeting.

After the collapse, he suffered this Tuesday due to gastritis and high blood pressure, which conditioned his participation in the summit. Poly G20The Argentine president limited his official agenda for this Wednesday to a meeting with his Spanish counterpart a few hours earlier. Pedro SanchezHotel Melia and at the conference he had with Georgieva.

During the meeting held at the hotel’s ground floor Tambaksiring Room, the President proposed to review the targets agreed with the credit institution for the third and fourth quarters of the year. In addition, he urged a reduction in additional fees charged by the agency and demanded compensation for the costs of the war in Ukraine.

Participated in the meeting Geeta GopinathIMF Economic Adviser; Krishna SrinivasanDirector of the Asia and Pacific Department; Christian Momsen, CFO; Y Christina Costia, the agency’s deputy executive director. Fernandez was the principal Santiago cafieroEconomic Minister Sergio Massa and Ambassador to the United States, George Arguello.

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This is how Alberto Fernandez and Kristalina Georgieva came to the meeting

Yesterday morning, after being received by the President of Indonesia, Joko WidodoAnd as he began to experience the first discomforts of his health picture, Alberto Fernandez held a quick meeting with the managing director of the IMF, in which he said he would deal with “the issue of flight attendants” today.

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In fact, the president left for Indonesia with the intention of asking Georgieva at the IMF. Reducing the amount of surcharges and establishing a new issue of Special Drawing Rights (SDRs). To mitigate the economic and social consequences of the war in Ukraine.

The IMF applies a surcharge – plus interest – to countries that receive credits in excess of the amount they are due in relation to the value of their contributions to the multilateral lending institution. Argentina, due to quota payments to the fund, received excessive debt (44,000 million dollars). This exorbitant annual surcharge is – approximately – 1,300 million dollars.

The impact of the COVID-19 pandemic has wreaked havoc on the economies of poor and middle-income countries, and the IMF Board decided to approve an additional issuance of Special Drawing Rights for $650,000 million. Argentina received an inflated $4,300 million in central bank supplies at the end of August 2021.

“In my last telephone conversation with Kristalina Georgieva I asked her these two things”, The head of state said during a conversation with Argentine journalists in Paris a few days ago. Today he returns to make demands on the mass in Bali at 5:00 pm (6:00 pm in Argentina) in a meeting that began a few minutes later.

Argentine President at the G20 Summit in Bali
Argentine President at the G20 Summit in Bali

“First, I pointed out to Kristalina Georgieva how the consequences of the war affect not only Europe, not only Russia and Ukraine, but the whole world. But for Argentina, in particular, the war cost 5,000 million dollars. We had to pay more as a result of $5,000 million in energy costs, as a result of fertilizer costs, as a result of food costs. Y I once again raised the need for them Check for additional charges In our opinion they are very unfair mechanisms that affect countries that are heavily punished by debt and in a case like Argentina it is the result of a completely irresponsible debt,” explained Alberto Fernández in statements to the press.

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Despite the president’s insistence, the IMF director is not expected to grant any request. On the one hand, the surcharge is used to pay the bureaucracy of the fund, and the extra issuance of SDRs due to the war in Ukraine is a working hypothesis opposed by the staff of the organization, because they think it can. Increases global inflation.

Meanwhile, a panel of the Multilateral Credit Organization is working with officials from the Ministry of Economy in Argentina to send $5.9 billion to the country by the end of the year for a third-quarter review.

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