United States of America “Follow me closely” the negotiations between Argentina and the International Monetary Fund and the possibility that the institution advances disbursements for our country during the electoral period, something that Minister Sergio Massa ardently requests. Joe Biden’s government seeks “to ensure that the Fund sees the global context of what is impacting Argentina”, especially the drought, and said that andwill evaluate the decisions taken by the technical staff and the board of directors on the matter. He admits, however, that the issue of approval is “very difficult, especially in an election year”.
The 26th Latin America Conference organized by the Andean Development Corporation and the InterAmerican Dialogue in Washington was attended by the two highest-ranking Biden government officials for the region: John González, the National Security Council adviser for Latin America, e Brian Nichols, Undersecretary of State for the region.
During the conference, González was consulted by a CNN anchor on how the White House supported the government’s efforts vis-à-vis the IMF. González said so “It is very difficult especially in an election year for Argentina, but we’re doing the same thing we did when they restructured the debt. We follow the work of the IMF staff very closely and when they reach an agreement, we with the council, with Argentina, with other countries, try to understand that the context in which we find ourselves is unique”.
He added that “although Argentina is not the best example, I think the Fund has to show that we can respond to this kind of challenge in this kind of context. I think the way they (the IMF) will act based on what is happening in Argentina will give a signal to other countries.”
At the end of the meeting it was expressly consulted sLet’s see if the White House supports the idea of the IMF advancing funds ensure the stability of the economy during the election period.
This idea, according to economic sources, is being examined by Washington. In the midst of a severe reserve crisis, Massa is asking the Fund to advance up to US$10,000 million in disbursements expected this year and at the moment it is the most important object of the negotiation. The body has not commented on the matter, but is estimated to be wary of giving Argentina billions in the midst of the election period.
Regarding the possible advance of disbursements, González replied that “the process of this type of conversation is guided by the staff of the Fund and if they reach an agreement, we will examine it in coordination with the members of the board and the Fund. The same way we did last year, there is a great reserve of will between the United States and the Argentine people.”
He added that “we want to promote a positive dialogue, hWe have tried to ensure that the Fund takes into account the global context of what is affecting Argentina, also the drought, but ultimately it all starts with an agreement with staff and that’s where I think these types of conversations start, so I can’t give an opinion because it’s based on the Fund’s decision.”
consulted by clarion On China’s influence in the region in the context of Massa’s current tour of the Asian country, González said that “we are very confident in our ability to compete with China and in the conversations we are having with the countries of Latin America and the The Caribbean, even in Argentina, don’t ask them to choose but yes we demand what we demand, namely transparency with respect to certain standards that define many of the hemisphere values we have for human rights, the need to consult with civil society.”
“In this I think we had a very receptive audience in the government of Argentina, but also in Uruguay and other countries. They themselves demand that anyone, the United States, China or other countries follow certain rules of the game in the way of investing ”, she added.
Another of those who attended the conference was Brian Nichols, Undersecretary of State for Latin America. When asked if the Biden administration is concerned about Massa’s tour and if the relationship between Argentina and China complicates US support in negotiations with the IMF, Nichols stressed that “Argentina is a sovereign country. Minister Massa has his responsibilities to him and I’m sure he will consider talking to all the actors involved.”
And he added that “the important thing for us is this we consider Argentina an important friend and partner in many areas. We want to support Argentina and we do in many ways, and we will continue to support Argentina. We recognize the very difficult economic moment Argentina is experiencing is living and we hope that Argentine leaders can find a way forward with the support of the international community”.
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.