The Minister of Economy, Martín Guzmán, participated in a virtual meeting of G-20 finance ministers and played two strong chips: He asked the leading countries for political support to endorse the renegotiation of the debt with the Monetary Fund (IMF) via a sustainable program; At the same time, he gave details of the talks with the organism’s mission. The juiciest data, a coincidence of “all parties” on the negative and arbitrary of the stand-by loans that the management of Cambiemos took.
In the conference entitled “The global economy and the way forward”, the minister demanded the “support of the member countries to the negotiation that Argentina is carrying out with the IMF to establish a sustainable program“reported the Palace of Finance in a statement. During the meeting, prior to the Leaders’ Summit that will take place this weekend under the presidency of Saudi Arabia, the minister thanked” all the G20 countries for having supported the process of restructuring the Argentine debt ”.
Along these lines, Guzmán stressed that “the next step to resolve our macro and debt crisis is the program with the IMF, which will replace the stand-by agreement that Argentina and the agency signed in 2018.” He also added that “now we will also need them, and I ask for your support in this process,” and highlighted the “negotiations and constructive work with the IMF.” It was in this context that he slipped consistent criticisms between the Fund and the National Government on credit to Let’s change. “For all parties there has been a lot of frustration and anger with the previous program,” he said.
According to the minister, “many of us saw it as a political loan and fortunately all parties have been showing very positive leadership. Both Kristalina Georgieva and President Fernández have helped defuse the situation, ”he added.
Guzmán’s position before the G-20 also revealed some details of what was discussed with the organization’s mission, which is already traveling to Washington. Regarding the new program that is being negotiated with the multilateral organization, he explained that “macroeconomic policies will have to account for the reality that the country is going through. We have to define very carefully the ways in which we decide to resolve all imbalances, because it is urgent to tackle social imbalances ”.
Regarding sovereign debt restructuring processes, the minister remarked that “modern collective action clauses helped, but there is room to improve formal international frameworks, and the balance of power between distressed sovereign debtors and creditors.” “The G20 agreement on the Debt Service Suspension Initiative (DSSI) is an important milestone and Argentina supports the common framework for this treatment in the DSSI,” he said.
In this regard, he argued that “Argentina will continue to work within the limits of the rules of the international financial architecture together with all the G20 countries to build a more resilient and inclusive world economy.” Let me thank the Saudi Presidency for the positive leadership this year. We also welcome him to the new Italian presidency, and we wish them every success with the great challenges ahead “, concluded Guzmán.