Curious. Sergio Massa arrives in China right at year of the rabbit, and it is the minister who is pulling rabbits out of the hat, even if with less and less effectiveness in the face of the dynamics of a crisis that does not give up. The year of the rabbit means to the Chinese don’t lower your arms In search of perfection, which for this ancient culture is synonymous with harmony. Will the Minister of Economy be able to achieve that harmony to get comfortable at least until PASO?
By all accounts, the trip that Massa undertakes this afternoon at 4 pm from the Aeroparque, previewing the brand new presidential plane with his entourage of heads of state and accompanied by Máximo Kirchner, is not just to impress the Chinese, according to diplomatic sources joke.
From politics they ensure that Massa look for results that are elusive in Argentina to continue in what he aspires to, to be the presidential candidate. It will be over define next 10 June in the congress of the Renewal Front they assure.
Meanwhile, it is solicited by renew the currency swap with China for US$ 18,000 million which expires next August and aims to increase the amount usable for liquid reserves by 3,000 million. Today that amount is $5,000 million and would go to $8,000 million.
In what is a two-pronged negotiation, Massa is very attentive to what is happening in Washington. Anyone who is aware of it assures that the White House, Argentina’s main supporter in these negotiations with the IMF, advises to be attentive to What do the Chinese ask in return? but that doesn’t overturn what they have already defined, which is to prevent Argentina from sinking. Regarding the advance of IMF funds, two reputable former negotiators said clarion That there will be facilities but no money. And from the structures they understand that payments to the body are stretched.
The same situation in China, yes, it’s good news for Massa. the giant is It is now coming out of the pandemic forcefully with domestic consumption trying to catch up and fast-growing exports. On the last weekend of the holidays, around 200 million people mobilized, which hadn’t happened since 2018.
That if the minister had already warned him They will ask him about the outrageous inflation. But for Beijing, Argentina can play an important role put pressure on Brazil that it still takes time to sign the ambitious Silk Road program that Alberto Fernández signed last year.
As for the BRICS and the aspiration to get a loan, the management is in the process of seeing.
Massa bets that the bank that brings together Brazil, Russia, India, China and South Africa (Brics) and where China has a key weight, will lend him some money. Indeed, Article 7 of the institute contemplates an emergency fund for countries with currency crises but it is only for members.
Dilma Rouseff has just taken office as president and yesterday she complained to Fernando Haddad, Brazil’s economy minister, that he was reluctant to attend come to the convention this wednesday in shanghai. Although there are doubts that it is proposed to change Article 7 of the institute. They argue that if they give it to Argentina, India could later ask Bangladesh and other countries for other partners and friends. “They’re going to be inflexible, they’re not going to change that,” said one banker.
Massa’s agenda also has a high-energy component. On Tuesday, he met with China Gezhouba Group Corporation (CGGC) for the dams on the Santa Cruz River, then with Power China, which will have a battery of projects with funding as its main theme. Also with CET – Rete di Stato, in which the objective of expanding the electricity transmission system will be tackled. And then with Tibet Summit Resources for the development of lithium together with other companies.
The delegation is therefore made up of Diego Giuliano, Minister of Transport, Flavia Royón, Secretary of Energy and Agustín Gerez, President of ENARSA.
It is known that there will also be Parallel meetings between Miguel Pesce and the Chinese financial authorities. And what is not known is what Máximo Kirchner’s agenda will be.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.