Upon learning of Lula’s statements about the BRICS bank it will not provide a guarantee to help Argentina ease its reservesin the delegation led by Minister Massa, stuck in Shanghai that there is another attainable mechanism.
“It was not possible”, Lula said on Monday that he had reached an agreement to help Argentina. Her statements were read as a misstep by Alberto Fernández and Lula himself who elaborated this proposal together in Brasilia and consisted of a direct loan or guarantee to relieve the suffocating situation of Argentine reserves.
That bank has been christened the New Development Bank and its shareholders are the members of the BRICS, Brazil, Russia, China, India and South Africa. Dilma Rousseff has just assumed the presidency.
The problem is that a clause of the BRICS bank makes the agreement for financial guarantees unworkable. Nor can it be lent to Argentina since it is not a member countryas set out in Article 7 of the institution. Massa and Dilma Rousseff chatted via zoom for an hour and a half. And a technical team is analyzing various alternatives, they noted here.
Those possible shortcuts arise before the lack of quick access of Argentina to that group of countries or to modify an article of the statute to obtain quick and guaranteed funds, as promoted by President Lula da Silva with the opposition of his Central Bank. Claim that the new possibility will take shape next Thursday. Nobody wanted to anticipate here what it is.
just that There will be a formal meeting between Massa and Rousseff on Thursday in Shanghai. On Monday evening, the president of the central bank, Miguel Pesce, spoke with Rousseff herself in Shanghai, where the meeting of the bank governors is taking place. I was hoping to include Argentina’s request but in the end was set aside, as publicly declared by the Minister of Economy of Brazil, Fernando Haddad.
The New Development Bank (NDB) was also investigating the possibility to finance exports from Brazil to Argentinato mitigate the problem of access to foreign currency.
It is curious but yesterday there were those who clung to the declarations of Haddad, Lula’s Economy Minister: “The Ministry of Finance we work day and night to support Argentina. And I strongly believe that the New Development Bank is part of the solution,” Haddad said. which indicated that he tries not to resent it further bilateral trade due to the economic crisis, aggravated by the shortage of dollars, high inflation and a severe drought.
Shanghai, special envoy
Source: Clarin
