Alberto Fernandez called for longer terms and lower rates to repay Argentina’s external debt
President Alberto Fernandez in his letter to heads of state and leaders of the Group of Twenty A global pact to lengthen the terms of repayment of the external debt and reduce the rates “in view of the current conditions of social, health, financial and environmental pressures”. According to his vision, that would be the only way Create the conditions for sustainable growth.
Fernandez shared a 5-minute recorded message for the G20 Financial Summit, which prepares the Forum Presidents’ Summit to be held October 30-31 in Rome. This summit of financial institutions for development saw an intervention by the Argentine president last year in Paris, along with the United Nations secretary general, the Portuguese. Antonio Guterres, the French president Emmanuel Macron As part of the Peace Forum.
This time it was done in a hybrid way (face to face by default). The Argentinian Head of State was called to participate this time by Guterres and the Italian Prime Minister, Mario Draghi, to present our country’s position. The objective of the meeting is to rethink the structure and liquidity of international debt and development finance in a post-pandemic context..
Fernandez, who addressed the main authorities of international financial organizations and the most important banks on the planet, reiterated some of the concepts he expressed on Tuesday to the CAF Development Bank. He called for “decisive action from multilateral development banks” because “their contribution right now is recovery, focusing on reconstruction and the formation of genuine resilience and sustainability funds”.
He pointed out that middle-income countries like Argentina would be affected A triple crisis: the pandemic, climate change and debt. Faced with this situation, “it is necessary to rethink a new international financial architecture which provides a multidimensional response to these problems”.
Later warned that he “The Generalized Risk of a Large-Scale External Debt Catastrophe in Developing Countries”. This is why we “support the idea of promoting a comprehensive and lasting multilateral agreement capable of fully dealing with issues related to the restructuring of sovereign debt”.
Then he added that “the extension of the debt service suspension initiative produced by the Group of Twenty, whatever its value, It is a temporary measure that is not enough. It does not categorically address the urgent need for unsustainable debt relief and restructuring. Above all, we 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 “The expansion and distribution of the Special Drawing Rights of the International Monetary Fund, an initiative that opens the door to hope”. Among its listeners was the director of the Bulgarian Financial Authority Kristalina Georgieva, whom Argentina trusts to move forward with the renegotiation of its huge external debt involving a disbursement of 19 billion dollars for the next three years.
Then he askedDrawing rights must aim to feed a major global solidarity pact It includes countries with high climatic, social, productive and financial vulnerability. An agreement in a new spirit of solidarity, making it possible to extend debt payment periods and apply lower rates under conditions of social, health, financial and environmental stress ”.
Fernandez also said that “ climate ambition policiesAccording to his vision, “there is no climate crisis except the social and financial crisis”.
In conclusion, he explained that the world is experiencing an economic recovery “Two speeds” because of the differences between developed countries and more vulnerable countries. This is why he proposed “a multilateralism in which the International Development Bank assumes a real leadership role, allowing all countries to prepare equally, with the necessary resources, for the transition.” Towards a digital, resilient, sustainable and highly human 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, United States, France, India, Indonesia , Italy (which holds the presidency this year), Japan, Mexico, Russia and the United States. States. United Kingdom, South Africa and Turkey.
At this financial summit, besides 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 ((Managing Director 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 (Governor-designate, Council of Europe Development Bank, and Sergio Diaz Granados (President of CAF-Latin American Development Bank).
Besides Alberto Fernandez, the speakers were Ngozi Okonjo-Iweala, Director General of the World Trade Organization (WTO), Mathias Corman, Governor-designate of the Council of Europe Development Bank (CEB) and Antonio Guterres, Secretary- General of the United Nations. .
Alberto Fernandez once again called for a “reorganization of the international financial architecture” in his speech to CAF