Energy against debt: Germany’s message to Minister Guzmán before his request for deferral of payments to the IMF and the Paris Club

Energy in exchange for debt. This could sum up the message that Economy Minister Martín Guzmán received during his visit to Germany, where he began his arduous task of deferring payment of Argentina’s debt to the Paris Club and the International Monetary Fund. (IMF).

German officials have strongly emphasized the interest of German companies in participating in “clean energy” projects in Argentina.

Guzmán met with the secretary of the Federal Ministry of Finance, Wolfgang schmidt, “With whom he discussed the process of stabilization of the Argentine economy and the progress of negotiations with the International Monetary Fund (IMF) and the Paris Club,” reported the Palacio de Hacienda. The official intention is to defer this year’s payments of around $ 7.5 billion and to strike a new 10-year agreement with the IMF to repay the $ 45 billion loan taken out in 2018.

Also, they talked about “The constraints facing middle-income countries for a sustainable economic recovery in the context of the pandemic“. In this sense, Guzmán insisted on the idea that the additional resources issued by the Fund are intended for developing countries instead of being unused in the coffers of rich countries that do not use them.

The meeting was attended by the State Secretary of the Ministry of Foreign Affairs, Niels Annen.

After the meeting, Guzmán thanked officials “for such a productive day of work in Germany and for all the support of the past 16 months in key international processes for the macroeconomic stabilization of Argentina”. “It is important to always be together, and even more so in difficult times,” said the official.

Meanwhile, Schmidt underlined “the fruitful exchange with the Minister of Economy, Martín Guzmán” and agreed on the need to “stay together in difficult times”.

Overwhelmed by the pandemic, like almost everyone else, Schmidt then expressed on Twitter his pleasure at having seen the minister: “In addition to the many videoconferences, finally a ‘real’ meeting again. I really want to get back to normal, hopefully soon. The personal exchange is a little more pleasant ”.

In this tune Niels Annen underlined “the excellent meeting between Martín Guzmán and Wolfgang Schmidt” and stressed that “the fruitful cooperation between Germany and Argentina continues to enhance economic growth and the promotion of renewable energies”.

It should be recalled that yesterday Guzmán also met in Berlin with the Director General of Economic and Financial Policy of the German Chancellery, Lars Hendrik Roll, who is Chancellor Angela Merkel’s main adviser.

“During the meeting, they discussed the renegotiation of the debt with the IMF, the Paris Club and the international financial architecture,” he explained after yesterday’s meeting, to which the Argentine director participated in front of the Fund, Sergio Chodos.

“The minister gave them a file with the perspectives and principles on which the country seeks to base the program with the IMF,” he explained. They discussed “Guzmán’s initiative on SDRs and surcharges,” aimed at reducing payments by $ 1.4 billion for Argentina.

“It was a very positive meeting, with constructive and strategic ties. They also spoke of the opportunities for mutual benefits in terms of relations between Argentina and German companies, “which a few days ago expressed the need to reduce barriers to imports and increase international credit.

The German official also stressed the importance of “the development of renewable energies in Argentina”, an issue of particular interest to key companies in the sector, such as Siemens, among others. The meeting was also attended by Doctor Sous-Sherpa Oberndorfer and the Director of Foreign Trade and Economic Policy of the Federal Chancellery, Bohme – Bundeskanzleramt.

After his visit to Germany, which began on Sunday with a meeting with the Minister of the Economy, Peter Altmaier, Guzmán will travel to Rome, where he will be received tomorrow at 11 a.m. by Pope Francis, whom the government already requested as a token of support last year for the renegotiation with the bondholders.

In addition, in the Italian capital, he will meet his Italian counterpart, Daniele Franco, and will hold a meeting with Italian companies based in Argentina at the Argentine Embassy in Italy, hosted by Ambassador Roberto Carlés. The European tour will continue Thursday in Madrid, where a meeting will take place with the Minister of Economy and Second Vice-President of the Spanish Government, Nadia Calvin.

On Friday, he will conclude in Paris, to meet his partner French Finance, Bruno the Mayor, and his right-hand man, the Director of the Treasury and President of the Paris Club, Emmanuel Moulin. A priori, the Club intends that before renegotiating the debt of 2.4 billion dollars, the government signs an agreement with the IMF, as is generally the case with the rest of the debtor countries of this group of creditor countries.

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