Argentina asks Biden for support with the IMF; message is accompanied by AMLO and other presidents

2023-06-23 07:06:45

The Argentine government sent a letter to the President of the United States, Joe Biden, signed by the leaders of Brazil, Mexico, Chile, Colombia, Bolivia and Paraguay, requesting their support for Argentina in the negotiations it is carrying out with the IMF to review the credit agreement that it maintains with the agency.

“We ask you with respect and affection to support Argentina in the negotiations (…). The common and shared principles in the Americas, around democracy, human rights and social inclusion should guide us to find a solution quickly and effectively for Argentina”, expresses the letter, released publicly by the Chancellery of the Government of Alberto Fernández.

The letter recalls that Argentina has been working “hard” to deal with the “exceptional” debt contracted with the International Monetary Fund (IMF), in reference to the loan of 44,000 million dollars granted in 2018 during the Executive of Mauricio Macri (2015-2019)which was refinanced a year ago and which the current Executive is renegotiating again due to the effects that the pandemic, the war in Ukraine and a severe drought have had on the economy.

The Brazilian Luiz Inácio Lula da Silva, the Mexican Andrés Manuel López Obrador, the Colombian Gustavo Petro, the Chilean Gabriel Boric, the Bolivian Luis Arce and the Paraguayan Mario Abdo Benítez sign the letter.

“It is not feasible and neither is it desirable that the demands that do not duly consider the change in circumstances submerge Argentina in an unnecessary crisis that interrupts the ongoing recovery,” the text adds.in which it is stressed that “the inflexibility of the IMF to review the parameters of the agreement in the context of the drought described runs the risk of turning a liquidity problem into a solvency one”.

This week Argentina must pay maturities to the IMF for 2,700 million dollars, of which the payment process for 1,900 million has already been activated.

To face the new maturities, and in the midst of the large fiscal imbalances and the shortage of dollars that the country is dragging, the Government is advancing in negotiations with the IMF to redefine the agreement signed in 2022 with which the original credit was refinanced.

“Extraordinary circumstances call for extraordinary responses, as extraordinary as the over-indebtedness caused by the IMF loan, which is one of the main causes of the current situation. We seek a solution that allows the growth of Argentina, the generation of employment and the increase of its exports“, the leaders point out in the letter.

“All of them are necessary conditions for the country, in turn, to be able to face the maturities of the aforementioned loan,” they remark.

Alberto Fernández thanked “profoundly” on Twitter for the support of his colleagues, which he considered “another sign” of strength “as a region” if we work “in unity.”