Alberto Fernandez asked for longer terms and lower rates to repay Argentina’s foreign debt

Alberto Fernandez looks into the camera during his presentation to the G20 leaders

President Alberto Fernandez in his letter to the heads of state and leaders of the Group of Twenty major A global pact to extend external debt repayment terms and reduce rates “in light of the current conditions of social, health, financial and environmental pressures”. According to his vision, this would be the only way Creating conditions for sustainable growth.

Fernandez shared a 5-minute taped message for the G20 Financial Summit, which is preparation for the Forum Presidents Summit to be held from October 30-31 in Rome. This Financial Institutions for Development Summit had an intervention by the Argentine President last year in Paris, together with the Secretary-General of the United Nations, the Portuguese. Antonio Guterres, the French president Emmanuel Macron Within the framework of the Peace Forum.

This time it was done in a hybrid way (face to face by default). The Argentine Head of State was called to participate this time by Guterres and the Italian Prime Minister, Mario Draghi, to present the position of our country. The aim of the meeting is to rethink the structure and liquidity of international debt and development finance in a post-pandemic context..

Fernandez, who spoke to the main authorities of international financial organizations and the most important banks on the planet, reiterated some of the concepts he expressed this Tuesday before the CAF Development Bank. He requested “decisive action by the multilateral development banks” because “their contribution at this moment is re-establishment, focusing on reconstruction and the formation of real resilience and sustainability funds.”

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He stressed that middle-income countries such as Argentina would be affected A triple crisis: the pandemic, climate change and debt. Because of this situation, “it is necessary to rethink a new international financial architecture that provides a multidimensional response to these problems.”

Later warned that there “The widespread risk of a large-scale external debt disaster in developing countries”. That is why we “support the idea of ​​promoting a comprehensive and sustainable multilateral agreement, capable of fully addressing issues related to sovereign debt restructuring.”

Kristalina Georgieva speaks with Martin Guzman at their meeting in Washington, DC (Image: Reuters)
Kristalina Georgieva speaks with Martin Guzman at their meeting in Washington, DC (Image: Reuters)

Then he added that “the extension of the initiative to suspend debt services produced by the Group of Twenty, whatever its value, It’s a temporary measure not enough. It does not, categorically, attack the dire need for unsustainable debt relief and restructuring. We especially need a multilateral framework to restructure the debt of middle-income countries, the absence of which represents a real void in international financial governance.

Argentine President Celebrated “Expansion and Distribution of the International Monetary Fund’s Special Drawing Rights, an Initiative that Opens the Door to Hope”. Among his listeners was the head of the Bulgarian Financial Authority Kristalina Georgieva, whom Argentina trusts to move forward with the renegotiation of its huge foreign debt involving a disbursement of $19 billion for the next three years.

Then he askedDrawing rights should aim to nurture a great global solidarity pact It includes countries with high climatic, social, productivity and financial vulnerabilities. An agreement in a new spirit of solidarity, allowing to extend deadlines for meeting debt payments and to apply lower rates under conditions of social, health, financial and environmental stress “.

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Fernandez also said that “ climate ambition policiesAccording to his vision, “there is no climate crisis except for the social and financial crisis.”

In conclusion, he explained that the world has an economic recovery “Two speeds” due to the differences between developed and more vulnerable countries. That is why he proposed “multilateralism where the International Development Bank takes a real leadership role, allowing all countries equally to prepare, with the necessary resources, for the transition. Towards a digital, resilient, sustainable and highly humane economy. We must take advantage of this crisis to appear transformed and improved“.

The G20 is made up of 19 countries and the European Union. The 19 countries are Germany, Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, the United States, France, India, Indonesia, Italy (which holds the presidency this year), Japan, Mexico, Russia and the United States. Kingdom, South Africa and Turkey.

At this financial summit, in addition to Georgieva, David Malpass (President of the World Bank); Werner Hoyer (President of the European Investment Bank); Akinwumi Adesina (President of the African Development Bank); Odile Renaud Basso (President of the European Bank for Reconstruction and Development); Muhammad Al-Jasser (President of the Islamic Development Bank). Mokhtar Diop ((Director General of the International Finance Corporation); Mauricio Clavier Caroni (President of the Inter-American Development Bank); Marcos Trujo (President of the New Development Bank); Gustavo Montezano (President of the Development Bank of Brazil); Carlo Monticelli (Designated Governor, Development Bank of the Council of Europe, and Sergio Diaz Granados (President of CAF-Development Bank of Latin America).Messages from Leaders

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In addition to Alberto Fernandez, the speakers were Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), Mathias Corman, Governor-designate of the Development Bank of the Council of Europe (CEB) and Antonio Guterres, Secretary-General of the United Nations. .

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Alberto Fernandez once again called for a “rearrangement of the international financial architecture” in his speech to CAF

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