Monday, December 11, 2023

Brazil asks the IMF for special treatment for the Argentine economy

The President of Brazil, Luiz Inacio Lula da Silvaput on the table the complicated economic situation in Argentina, a country for which he requested special treatment during the meeting he held this Saturday with the director of the International Monetary Fund (IMF), Kristalina Georgieva, reported sources from the presidency.

Argentina, that must comply with the requirements of an agreement signed last year with the IMF to refinance a million-dollar loan granted in 2018, drags a complicated economic situation marked by the shortage of international currencies, the devaluation of the peso and an overflowing inflation that stands at 108% year-on-year.

This matter was also addressed by Lula during his first speech at the G-7 summit, in which he asked the financial organization for special treatment for the gaucho country.

“The external debt of many countries, which Brazil has experienced in the past and is plaguing Argentina today, is the cause of an alarming and growing inequality and requires a treatment from the International Monetary Fund that considers the social consequences of (fiscal) adjustment policies,” said the Brazilian president.

According to a brief communiqué from the Brazilian presidency, the situation in Argentina was later discussed, in Lula’s private meeting with the director of the IMF, as a necessary issue “for the regional balance of the South American countries”, without giving more details.

Another issue addressed at the meeting was the impact of the covid-19 pandemic on the “poorest countries in the world”.

As he brazilian president as the director of the agency agreed on the need for the financial systems of the affected nations to receive funds to help in their recovery process.

Brazil, as a guest country, joined today the G7 leaders’ summit that is being held in the Japanese city of hiroshimatogether with India, Indonesia or Vietnam, other nations invited to the appointment.

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