The governments of Brazil and Argentina will announce next week preparations to launch a common currency project that could turn the two countries, the two largest South American economies, into the world’s second-largest currency bloc.

The initial intention is that this new currency, whose name Brazil proposes to be “El Sur”, promotes regional trade and reduces the impact of the dollar. In principle, both countries contemplate a period of simultaneous trade with the Brazilian real and the Argentine peso.

“We will announce the decision to start studying the necessary parameters for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks“, announced Argentina’s Economy Minister Sergio Massa.

“I do not want to create false expectations: it is the first step in a long road that Latin America must travel”, added the minister, who said that Argentina and Brazil will invite other countries in the region to join this project, before recalling that in Europe it took 35 years to create the euro.

Brazil and Argentina have been discussing a common currency for years, but the talks have never come to fruition due to opposition from the Central Bank of Brazil. Under the government of the left in both countries, experts understand, in relation to Lula and the Argentine president, Alberto Fernández, there is greater political support for the project.

K.Tovar

Source: ElPais

(Reference image source: file)

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La entrada Brazil and Argentina will have a common currency apareció primero en Bitfinance.

The International Monetary Fund (IMF) and the Argentine authorities have reached an agreement at staff level on the second review under the Fund’s Extended Service Agreement, so that once the review is complete, Argentina will have access to close to 3,900 million dollars (3,897 million euros).

The Fund team, led by Luis Cubeddu, deputy director of the Western Hemisphere Department and chief of mission for Argentina, said the review has focused on assessing progress since the completion of the first review, updating the macroeconomic framework and reaching agreements. on a package of sound policies to further entrench macroeconomic stability and ensure sustained and inclusive growth.

In this context, it was agreed that the key objectives established at the time of the approval of the agreement, including those related to the primary fiscal deficit and net international reserves, will remain unchanged until 2023.

“This approach provides a vital anchor to continue rebuilding credibility and sustain the renewed commitment to implement the program, around the authorities’ pillars related to fiscal order and the accumulation of reserves”, the agency said.

Most of the objectives of the quantitative program until the end of June 2022 have been met, with the exception of the floor of net international reserves, mainly due to a higher than programmed growth in the volume of imports and delays in official external support.

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Source: dpa

La entrada IMF and Argentina reach an agreement on second review of debt apareció primero en Bitfinance.

The meeting between the presidents of Argentina and the United States scheduled to be held this July 26 in Washington was postponed. At the moment the new date of the meeting between Alberto Fernández and Joe Biden is not known.

This would be the first face-to-face meeting between the two leaders, so the date change due to the fact that the President of the United States, Joe Biden, is currently going through a coronavirus case, has generated high expectations in Buenos Aires.

It was learned that the announcement of the suspension of the meeting was announced by the Argentine ambassador to the United States, Jorge Argüello, in the morning hours of this Friday, without giving further details of the next date for the meeting.

In any case, information has been leaked from the White House that they must wait for President Biden to have two negative tests for coronavirus, but this “is uncertain.”

The agenda of this meeting that has been postponed included issues such as the agreement between Argentina and the International Monetary Fund last March to refinance the debt of some 45,000 million dollars in addition to the “obligations that this agreement entails for the South American country, such as a reduction in public spending, which is resisted by social organizations and unions and a more leftist wing of the government”.

M.Pino

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Source: vozdeamerica

La entrada Meeting between presidents of Argentina and the United States was postponed apareció primero en Bitfinance.

The president of Argentina, Alberto Fernández, appointed Silvina Batakis as the new Minister of Economy after the resignation of Martín Guzmán due to pressure due to the economic situation in the country.

Batakis is 54 years old, is an economist and held the position of Minister of Economy of Buenos Aires between 2011 and 2015, during Daniel Scioli’s administration. Currently, she is secretary of provinces of the Ministry of the Interior since December 2019.

The new minister has a degree in Economics and a master’s degree in Public Finance from the National University of La Plata and a master’s degree in Environmental Economics from the University of York, England.

Batakis’ appointment as Economy Minister comes after a day of meetings with the presence of the president of the Argentine Chamber of Deputies, Sergio Massa, and Alberto Fernández’s closest advisers.

Until now, the person in charge of the Economy portfolio, Guzmán, declared his resignation in a letter addressed to President Alberto Fernández and published on his official Twitter account: “With the deep conviction and confidence in my vision of what is the path that should follow Argentina, I will continue working and acting for a more just, free and sovereign Homeland”.

K. Tovar

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Source: La Voz

La entrada Argentina has a new Minister of Economy apareció primero en Bitfinance.

The Directory of the International Monetary Fund (IMF) will meet to vote if it finally gives a green light to the agreement reached with Argentina for the deployment of a program of 45,000 million dollars that would refinance the loan that the Agency granted the country in 2018.

A month ago, the IMF based in Washington and Argentine authorities reached an agreement at the level of technical personnel on economic and financial policies supported by an extended service agreement of the 30-month fund.

After this principle of agreement, the Agency announced on Saturday an postponement of debt maturities worth more than 2,000 million dollars that Argentina had to pay on March 21 and 22. These will expire on March 31.

The team headed by Julie Kozack, Deputy Director of the Department of the Western Hemisphere, and Luis Cubeddu, Head of Mission for Argentina, then explained that the objective of the program is to provide the South American economy budgetary and balance of payments support. They seek to address the economic challenges “pressing in the country and improve the perspectives of all Argentines, through the implementation of measures designed to promote the growth and protection of essential social programs.”

Among the objectives of the program, it seeks to address high persistent inflation through a multiple strategy, which involves a reduction in monetary financing of the fiscal deficit and a new framework for monetary policy. Their purpose is the generating positive interest rates to support internal financing, which together with other measures, will help promote a continuous reduction of inflation over time.

Source: dpa

La entrada FMI to decide agreement with Argentina apareció primero en Bitfinance.

The Government of Argentina announced that the country’s supermarkets must lower the prices of 580 products to the value they had on March 10 due to “unjustifiable increases.”

The decision was adopted by the Ministry of Internal Trade, after a meeting with representatives of the Association of United Supermarkets (ASU) and the main companies that produce mass consumer goods.

The Secretary in charge of Roberto Feletti explained that the decision has been taken due to higher increases in several products, which also alerted the Ministry of Productive Development and led to joint action by the two entities.

According to the Government, the chains that have presented a higher level of price increases have been Walmart/Changomas and Cencosud.

The Ministry of Commerce has advanced that if there are non-compliances, fines and sanctions will be applied, and has assured that it can apply the supply law.

K. Tovar

Source: Swissinfo

La entrada Argentina regulates prices of 580 market products apareció primero en Bitfinance.

The Senate of Argentina approved with 56 votes in favor, 13 against the sector led by Cristina Kirchner and three abstentions the agreement signed between the Argentine president, Alberto Fernández, and the International Monetary Fund (IMF).

The agreement will refinance the debt of 45,500 million dollars that will serve to restructure the “stand-by” program received in 2018 during the government of former Argentine President Mauricio Macri.

The vice president of Argentina, Cristina Fernández de Kirchner, who refused the agreement, was not present at the time of the vote, as reported by several media outlets. It is estimated that next Monday the IMF board in Washington will approve the agreement and Argentina will avoid the ‘default’.

This agreement has been the victim of criticism throughout the country. On Thursday, at least eight people, including five policemen, were injured in the protests called by left-wing organizations against the IMF agreement, and a group of protesters attacked the Congress of Deputies with stones and Molotov cocktails in Argentina.

K. Tovar

Source: Elpais

La entrada Senate of Argentina approves the agreement with the IMF apareció primero en Bitfinance.

The Government of Argentina has this Friday a debt maturity with the International Monetary Fund (IMF) of 730 million dollars corresponding to the 45,000 million loan that the agency granted in 2018 to the previous Administration of Mauricio Macri.

With this maturity, the Government enters a successive stage of maturities that continues on February 1st, with a payment of 365 million dollars, and continues with maturities of approximately 2.9 billion dollars in March.

The Executive continues to negotiate with the Fund a restructuring of the credit that it received in 2018. To the question of whether the Government will make the payment of the coming maturities in these months, there is still no answer.

This follows from the statements this Thursday by the spokesperson for the Presidency of Argentina, Gabriela Cerruti, who has not confirmed whether or not the Government will make the payment of interest owed.

The spokeswoman indicated that the government’s decision will be one or the other depending on “how the talks progress.”

Without offering more details, Cerruti explained that the South American country seeks a growth path in its agreement with the IMF, in addition to defending “the rights of workers and retirees, spending on social matters, investment in technical science, investment in education and the rights of workers and above all that the path of production and growth continues so that we can continue to arrive with genuine employment, with education, with good pensions for all Argentines”.

Source: dpa

La entrada Argentina’s debt with the IMF expires on Friday apareció primero en Bitfinance.

At a meeting held in the Casa Rosada, Alberto Fernández, President of Argentina, and Sergio Díaz-Granados, Executive President of the Development Bank of Latin America (CAF) agreed on financing in the order of 2,670 million dollars for the development of social, technological and infrastructure projects.

The information was provided by Government House personnel, detailing that during the meeting the rulers analyzed “eight credits for more than 1,100 million dollars” that were signed on October 13.

According to government information, 300 million dollars will be allocated to the project to support the Argentine National Plan against Hunger “ALIMENTAR II”. More than 243 million dollars will be used to develop and manufacture the “ARSAT – SG1 satellite“, while 225 million will be allocated to the renovation of the “M” branch of the Belgrano railway.

The rest of the budget will allow to leverage a program to support the Strategic Plan for vaccination against COVID-19, financing for school infrastructure and modernization of the air traffic surveillance system.

The presidential information highlights that they also agreed a new financing for 570 million dollars for these last months of 2021 and an additional 1,000 million dollars in 2022 that will promote the integral development of the country.

For his part, the president of the CAF, Díaz-Granado, thanked the Argentine Government for the “approach it has given to the use of this multilateral bank”, highlighting that the organization seeks to work “hand in hand with science and technology, focused on people.”

M. Rodríguez

Source: espnol.cgtn.com

La entrada CAF grants financing for projects in Argentina apareció primero en Bitfinance.

The International Monetary Fund (IMF) held “productive meetings” with Argentina to advance an economic program and the restructuring of 44,000 million dollars of debt that the country requested under the administration of Mauricio Macri.

As revealed by the agency, an IMF team headed by Julie Kozack, deputy director of the Western Hemisphere Department, and Luis Cubeddu, the Fund’s chief of mission for Argentina, met with the Argentine Minister of Economy, Martín Guzmán, and his team from the July 8-12 in Venice with the aim of deepening the technical work necessary to develop an IMF-supported program.

“Argentine authorities and IMF technical staff held productive meetings to advance technical work toward an IMF-supported program,” the Washington-based institution details.

Among other topics, the teams discussed the evolution of the global environment and the pandemic, as well as its implications for Argentina’s macroeconomic framework. In this context, talks between the parties focused on policies to strengthen recovery, economic stability and job creation.

Likewise, Argentina and the IMF made progress in identifying policy options to develop the domestic capital market, mobilize tax collection, and strengthen the country’s external resilience.

The Fund affirmed that it will continue working with the Argentine authorities with the objective of deepening “even more” its understanding in “key areas”. “Our objective is to support Argentina in addressing its economic and balance of payments challenges in a lasting way”, the statement added.

K. Tovar

Source: IMF

La entrada IMF and Argentina work on debt restructuring apareció primero en Bitfinance.