IMF disbursements and investments: axes of interest for Massa at the G20 meeting

IMF disbursements and investments: axes of interest for Massa at the G20 meeting

Sergio Massa with Jay Shambaugh.

The Minister of Economy, Sergio Massaheld three bilateral meetings this Thursday during his first day of stay in India, where he is participating in the summit of G20 Finance Ministers and Central Bank Presidents, in which he sought to gain support for the prompt approval of the revision of the program with the IMF, which will allow disbursements for US$5.800 million by the multilateral organization.

Another of the objectives of the head of the Palacio de Hacienda was to achieve concrete consideration by the G20 and the IMF of the impact that the war in Ukraine has on the Argentine economyas well as the situation that the country currently faces due to the drought.

According to official sources, Massa sought to emphasize the cost of prolonging the war in Ukraine and the economic impact that the drought will demand for the period 2023, factors that would impose greater challenges to achieve the quantitative goals agreed with the multilateral organization for the current year with regard to the primary deficit, reserves and advances from the Central Bank to the Treasury.

Sergio Massa with Wang Dongwei
Sergio Massa with Wang Dongwei.

He fulfillment of the 2023 goals It is vital for the normal development of the disbursements provided for in the program with the IMF, in which Argentina will have to go through four quarterly reviews in the middle of an electoral year and with complications on the external front due to the rise in interest rates at the national level. global and for the continuation of the war in Ukraine.

The first meeting that the Economy Minister held this Thursday in the Indian city of Bengaluru, where the G20 session is taking place, was with the Undersecretary for International Affairs of the United States Department of the Treasury, Jay Shambaugh, with whom he analyzed “the international financial situation”as well as “the advances in the economic program and in the revision of the agreement with the International Monetary Fund (IMF)”, specified the Palace of Finance.

Massa and Shambaugh also addressed the impact of the war between Russia and Ukraine and the drought in Argentina, two aspects that the Government believes should be taken into account in negotiations with the IMF due to their impact on fiscal accounts and foreign currency income. .

In a statement, the Ministry of Economy indicated that other issues analyzed were “the need to find ways of financing for middle-income countries and the impact on the global food security agenda and on the economies of the enormous drought that is affecting Argentina and other countries”.

In the meeting, which lasted for an hour, Massa was accompanied by the head of the National Institute of Statistics and Censuses (Indec) and Secretary of Institutional Relations, Marco Lavagnawhile representing the Department of the Treasury, the counselor Andy Baukolthe director of International Monetary Policy, Shannon Dingand the principal adviser to the undersecretary, Jacob Kloper Owens.

Massa’s schedule continued with a meeting with the Minister of Finance of India, Nirmala Sitharamanin which they addressed different financing options for sustainable projects and infrastructure for smart cities, as well as the role of multilateral development banks, highlighted the Palacio de Hacienda in a statement.

Sergio Massa with Nirmala Sitharaman
Sergio Massa with Nirmala Sitharaman

In this sense, Massa and Sitharaman agreed on the importance of financing for the development of infrastructure in cities that allows for social inclusionwhile the Indian official recognized the contributions of Argentina in the infrastructure agenda.

Likewise, the ministers referred to the green agenda and emphasized the need to advance in compliance with international agreements on international financing for climate change, among other issues.

Massa’s last bilateral meeting during the day was with Chinese Vice Minister of Finance Wang Dongweiwith whom he advanced in “the strengthening of bilateral relations“, the search for financing for infrastructure works and the reinforcement of international reserves.

As he stated in a message on his Twitter account, during the meeting with Dongwei progress was made “in strengthening bilateral relations, focusing on new opportunities and new mechanisms to finance our infrastructure and reinforce Argentine reserves.”

“This year China will carry out 4 development projects in the country and we are also advancing with financing projects for the railways and with AMBA 1, which will reinforce and improve the electricity supply infrastructure in Greater Buenos Aires,” said Massa.

At the meeting, Massa was accompanied by the president of the Central Bank of the Argentine Republic, Miguel Pesce; and by the Secretary for International Economic and Financial Affairs and head of INDEC, Marco Lavagna.

This Friday, the agenda that the head of the Palace of Finance in the city of Bengaluru will develop includes meetings with his peers from France, Bruno Le Maire, and from Brazil, Fernando Haddad.

With regard specifically to the G20, Massa will participate in the sessions on International Financial Architecture, Sustainable Finance and Infrastructure, and the Financial Sector and Financial Inclusion, in which he will be one of the speakers, among other activities.

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