Alberto Fernandez and Cristalina Georgieva will meet tomorrow in Rome to discuss negotiations with the International Monetary Fund. This will be the first time that the President and General Manager of the International Monetary Fund participate in a face-to-face meeting, after successive phone calls and approximations aimed at unifying a card that allows Argentina. Honor Its foreign debts without implementing an adjustment plan would exacerbate the country’s social and economic crisis.
The head of state and the director general have mutual sympathy This alignment allowed Martin Guzman to move forward with negotiations to refinance all maturities of the $ 44 billion debt contracted by Mauricio Macri when he occupied Casa Rosada and Christina Lagarde was the IMF’s public image.
Alberto Fernandez does not wish to pay a single penny to the International Monetary Fund during 2021. The directive to the economy minister is to prevent Argentina from falling into payments under two capital entitlements that should be repealed in September and December. If there is no agreement with the fund, maturities will decrease and Argentina will be in default.
in this context, Alberto Fernandez’s meeting with Georgieva is necessary to reach a consensus that will allow default to be avoidedAnd to meet the expectations of countries that have lent 44 billion dollars and want to recover their private public funds, and design a plan that sets new rules for the game between the International Monetary Fund and the debtor countries.
There is an ideological line trying to propose a new global order for the pandemic after COVID-19. This geopolitical outlook is promoted by Joseph Biden in the United States and Francisco of the Vatican.
There it is A handful of political and financial actors, regional leaders and academic references, are joining the idea of boiling over Since Coronavirus has attacked insidiously without asking about age, gender or religion.
Kristalina Georgieva, Andres Manuel Lopez Obrador, Pedro Sanchez, Mario Draghi, Alberto Fernandez and Emmanuel MacronTo point out the cases that show the heterogeneity of the movement that is being capitalized on in the White House and in Santa Marta, it is the general outpost that seeks to crown new ideas in the International Monetary Fund, the Group of Twenty, Mercosur and the European Union.
From this perspective, The Alberto Fernandez-Georgieva meeting can only be summed up at a negotiating table where the debtor and creditor demand better payment terms. Strictly speaking, the meeting of the President and Managing Director aims to reach a consensus on the repayment of the external debt left by Macri, But also to create a roadmap that allows for greater harmony between countries facing structural difficulties and the IMF.
With this scenario coming up, Alberto Fernandez will use the opportunity for Georgieva to describe his proposal for a new financial architecture for the International Monetary Fund. The president has the advantage: Antonio Costa (First Portugal), Pedro Sanchez (Head of the Spanish government), Macron (President of France) and Mario Draghi (The Prime Minister of Italy) accepted his point and also discussed its key aspects during the G20 meeting scheduled to be held in Rome in October.
Georgieva will not be surprised by Alberto Fernandez’s ideas. The managing director is close to Francisco and his office as the managing director of the International Monetary Fund is in Washington. She knows that the Argentine president is pushing for four reforms that are difficult to solve in the short term, but that are possible in the coming years if the G7 supports them with all their geopolitical strength.
Those four reforms that Alberto Fernandez spoke to Francisco today, Specify the following:
1. Extending the terms of appropriations – permanent and extended facilities – to reduce the sequence of payments to debtor countries.
2. Reducing the rates indebted countries pay in the face of the current economic crisis
3. Assemble the SDRs of powerful countries, then allocate them to medium-sized countries in a proportional manner
4. Abolish the excessive fees applied to indebted countries that involve the transfer of millions of dollars in favor of the International Monetary Fund.
The meeting between Alberto Fernandez and Georgieva will take place at the Sofitel Hotel in Villa Borghese, at 9.00 (Italian time). It is not unlikely that Minister Guzmán and Minister for Strategic Affairs Gustavo Piles will participate in the meeting with the Director General of the International Monetary Fund.