President Luiz Inácio Lula da Silva said, this Tuesday (2), that the Brazilian government will articulate with the Brics, an economic bloc made up of Brazil, Russia, India, China and South Africa, and the International Monetary Fund (IMF) ) to help Argentina, in serious economic crisis. The announcement was made alongside Argentine President Alberto Fernández. The two met for nearly four hours at the Alvorada Palace. Lula stated that it is necessary to make the IMF “take the knife from Argentina’s neck”. The articulation will be coordinated by the Minister of Finance, Fernando Haddad, who participated in the meeting in Alvorada. “The IMF knows how Argentina got into debt, knows who it lent the money to. Therefore, you cannot keep putting pressure on a country that only wants to grow, create jobs and improve people’s lives,” said Lula. “From a political point of view, I made a commitment to my friend Alberto Fernández that I will make any and all sacrifices so that we can help Argentina in this difficult moment,” he added. Brazil’s biggest trading partners in South America, Argentines are facing a new economic crisis, with the devaluation of the peso – the local currency – loss of purchasing power and high inflation rates. In March, inflation in the neighboring country reached 104% per year. Regarding the Brics, President Lula informed that he has already spoken with the president of the New Development Bank (NBD), Dilma Rousseff, to verify the possibility of the group helping Argentina. According to him, currently, the rules of the bloc do not allow support to non-member countries. However, a change in the regulation, with the approval of the bloc’s finance ministers, may provide some kind of financial aid. “[Alberto Fernández] arrived apprehensive, and will return calmer. True, no money. But with a lot of political disposition”, joked Lula. Line of credit Another topic at the meeting is the creation of a line of credit to finance Brazilian companies that export to the Argentine market. One of the points to be settled is what guarantee Argentine importers can offer, since the currency and national bonds have lost value with the economic crisis. Teams from both countries will meet in the coming weeks to find a solution to the obstacles. “What I want to make clear is that we are not having a discussion to help Argentina. The discussion is different. It’s just that we need to help Brazilian businessmen who export to Argentina and finance Brazilian exports, as China does for Chinese products,” explained Lula. “We are discussing so that we can find a way for our exporters to continue with their companies operating, generating jobs and for exports and imports between Brazil and Argentina to continue growing”, he added. The president of Argentina, Alberto Fernández, pointed out that he wants Brazil to take back the space occupied by the Chinese. “Brazil largely lost exports to Argentina. This happened because China financed Chinese companies and gained market share over three years. What I want is for Brazil to recover that space. We need Brazil to recover this space”, said Fernández. He also thanked President Lula for his declared support in seeking financial help. “I celebrate the position of the Brazilian government in relation to Argentina and the International Monetary Fund (IMF). As you know, we are negotiating with the fund the program to which we committed ourselves, because in fact situations have changed, not just because of the war and the drought. And knowing that I can count on the help of Brazil and President Lula is of great value”, he said. The meeting was attended by the vice-president of Brazil, Geraldo Alckmin, the executive secretary of the Treasury, Gabriel Galípolo, the president of the National Bank for Economic and Social Development (BNDES), Aloizio Mercadante, and the special advisor to the Presidency of the Republic, Celso Amorim.
Agência Brasil
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