2023-05-26 21:40:00
The Brazilian minister, fernando haddadI had to travel this weekend to China to participate, next Tuesday, in the meeting of the Bank of the Bric ́s in Shanghai. It is the group of countries that brings together the great Asian power along with Russia, India, Brazil and South Africa.
The official, one of the most “heavy” of the Brazilian government, had to fulfill a task assigned to him by the president Lula da Silva in relation to Argentina: discuss with the multilateral institution the possibility of offering itself as a guarantor of Argentine-Brazilian bilateral trade.
This would allow the Brazilian government to finance, via the National Bank for Economic and Social Development, companies from your country that export to our ports. For the Argentine importers would be key this benefit in the face of the shortage of reserves in the Central Bank. The mechanism would allow you to postpone, for a determined time, the dollar payments of goods purchased from companies in the partner country.
Brazil asked for help for Argentina at the G7 financial meeting
But Haddad canceled, at the last moment, his physical presence at that appointment as the official himself anticipated last night. Now the minister will participate in the deliberations via videoconference. There is an explicit reason justifying the absence: In the coming days, the domestic agenda of the Ministry of Finance will present great challenges, as explained by members of the team. In addition, the institution is today under the direction of the former Brazilian president Dilma Rousseffwho in fact will command the negotiations.
A bet of the Lula government
For President Lula da Silva, the conversations in the Bank of the Brics ́s are a great bet of your government: “We are not looking for them to lend money to the Argentines. What we want them to serve as guarantors for facilitate the bilateral trade relationship”.
In the celebration of Industry Day in Brazil, yesterday in São Paulo, the president mentioned with crystal clarity the purpose pursued: “The concrete fact is that China made available to the Argentine government 30,000 million dollars. That money is used for neighbors to buy Chinese products. For this reason, we need guarantees to finance our exporters. What we want to see is if the Bric ́s will be able to act to help. We are interested in our industrialists exporting more and more to Argentina”.
It is good to remember that, at the beginning of May, when Lula met with Alberto Fernández in Brasilia, promised to “seek a way out for trade between the two countries”, although he later added “to the extent of our possibilities”. Among Brazilian businessmen there is a lot of expectation; it happens that they will receive immediate payment for their sales in Argentine territory, which will be disbursed by the Brazilian BNDES in reais. The payment of the debt that the Argentine government accumulates with the institution will be implemented in longer terms.
Who confirmed the trip to Shanghai, and then to Beijing, is Minister Sergio Massa. He will leave this Sunday night to participate in the negotiations with the Banco de los Bric ́s next Tuesday. But his objective is much more comprehensive, since he will then go to the Chinese capital to meet “his peers” in the economic area.
Minister Haddad, who had planned to accompany him, was forced by the internal situation to remain in Brazil to design the next measures to be taken in the economic area. These days, the official achieved notorious success: he managed to get the Chamber of Deputies will approve the new tax law, which imposes strict limits on state spending: they must not exceed 70% of national income; although this norm exempts from the limit those social disbursements such as the “Bolsa Familia”, the famous subsidy for the poorest. His great challenge, in the coming days, is to negotiate the consensus of the Senate. Once this legislation is approved, which replaces that known as the “Expenditure Ceiling”, the immediate task of the Ministry of Finance will be to get Congress to immediately address the tax reform debate, the only way to guarantee good income. to the tax
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