Argentina’s proposal could have a positive result before the IMF

The Argentine administration had been insisting on this issue for several months before the G-20 summit and environmental summits, but in these last two events attended by Europe’s highest president, they resonated strongly.

This result, in turn, could accelerate and favor Argentina’s negotiations for a new agreement with the Fund.

Agency spokespersons who were consulted by Tellam noted that “debt-climate swaps can be a useful complement to existing climate finance tools, particularly in countries with sustainable debt but limited fiscal space.”

This week, Argentina’s representative to the IMF, Sergio Chodos, noted that Argentina was one of the first countries to have been able to restructure its own debt during the pandemic and is currently “the only balance of payments problem it has with the IMF.”

In the Scottish city, Fernandez urged “the creation of payment mechanisms for ecosystem services, swapping debt for climate action, and stabilizing the concept of environmental debt.”

“It is necessary to implement the issuance of the International Monetary Fund’s Special Drawing Rights to a large ecological solidarity pact, which includes low- and middle-income countries, which extends debt conditions and introduces lower rates,” the head of state explained.