European tour: Alberto Fernández ratified Martín Guzmán as key minister and relativized the position of hard Kirchnerism vis-à-vis the IMF

In the privacy of the official flight that brought him to Europe, during the meeting he had with his Portuguese colleague Marcelo Rebelo de Silva and when he confronted more than ten journalists in an informal interview that lasted almost of one hour, Alberto Fernández recalled that Martín Guzmán has all his political confidence and that he is a key player in the negotiations with the International Monetary Fund (IMF).

“Basualdo is a solved problem; we must continue to work ”, Alberto Fernández responded when asked about the political stability of the Under Secretary for Energy who survived the onslaught of the Minister of the Economy.

But the presidential gestures towards the head of the Palacio de Hacienda did not stop there. Whenever a question was asked about foreign debt, regardless of its depth or political meaning, Alberto Fernández derived the answer to Guzmán from it.

“Explain Martín, you are the one who knows”, the head of state repeated like a litany in front of the special envoys covering the tour of Europe.

Special Drawing Rights (SDRs) are a financial resource created by the International Monetary Fund (IMF) which is sent to member countries of the Multilateral Credit Organization. Many months ago, Martín Guzmán spoke about Alberto Fernández on the possibility of canceling the September and December deadlines of this year with the SDRs, which were extended by unanimous decision of the G7.

The final figure for the Extended SDR and IMF participating debt is netean mutually: About $ 4.5 billion can come in and $ 4.3 billion must go out, committed by Mauricio Macri to the board of directors that Christine Lagarde headed under the political instructions of Donald Trump.

From this financial perspective, since there will be no agreement with the IMF before the end of 2021, The cancellation of capital maturities with the enlargement of the SDR is an obvious, pragmatic and politically inexpensive alternative to a few months before the elections.

Yes This is how Guzmán proposed – with the President’s endorsement– to each of the finance ministers visiting Europe, to the IMF bureaucrats in Washington, Kristalina Georgieva – Managing Director of the Fund– when they met in his official office, and representatives of the US Secretary of the Treasury who have contacted in recent weeks.

Guzmán reported this streak to Alberto Fernández. And the president was satisfied with the measures taken by the minister to honor the debt, pay principal maturities, continue negotiations with the IMF and avoid an unexpected default towards the end of 2021.

But economic information on the SDR, the IMF and its weight in the global financial agenda is not exactly included in some dispatches from the Senate, a political territory that Cristina Fernández de Kirchner controls without partners or allies in the ruling coalition.

In this context, and in the face of the support that Guzmán received from the Head of State, the bench of the Kirchnerist Senate proposed a draft declaration suggesting to Palacio de Hacienda which does not apply SDRs to pay IMF capital maturities down $ 4.2 billion in September and December.

A political proposal which, accepted by Casa Rosada, This could involve a default process that the Fund runs when a country does not pay its due dates. agreed upon when confirming or extending credit credits are obtained.

And Mauricio Macri concluded with Christine Lagarde that Argentina must pay in September and December 2021. A commitment included in the 2018 Stand-by which the Frente de Todos coalition inherited without inventory benefit.

“It’s a draft declaration. That’s it, a statement. It is not a law: we do not have to obey it … ”, declared Alberto Fernández when asked what he thought of the initiative drafted by Senator Kirchner Oscar Parrilli.

-Then?- They insisted on the modern bar at the Eurostars hotel in Lisbon.

The president spread his arms, together the fingers of his hands in the best style Pascualino Seven beauties, and replied: “From the declaration, let me explain?”

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