Alberto Fernández is meeting with Kristalina Georgieva and will try to change the rules in the agreement with the IMF

Alberto Fernández meets with Kristalina Georgieva

(Special Envoy to Bali, Indonesia) Alberto Fernandez is meeting with the managing director of the International Monetary Fund (IMF), Kristalina Georgieva. In the bilateral meeting, the President is proposing a review of the goals agreed with the credit agency for the third and fourth quarters of the year. In addition, the president will propose a reduction in the surcharges charged by the agency and will ask that the costs of the War in Ukraine be compensated.

After the decompensation he suffered this Tuesday as a result of erosive gastritis and hypotension, which conditioned his participation in the summit of the Bali G20the Argentine president limited his official agenda for this Wednesday to the meeting he had a few hours ago with his Spanish counterpart, Pedro Sanchezat the Hotel Meliá, and the conclave that he is having with Georgieva for these hours.

The meeting takes place in the Tampaksiring room on the ground floor of the hotel. Georgieva was received by the Argentine ambassador to the United States, Jorge Arguello. She and she is accompanied by a small entourage consisting of Gita Gopinath, Krishna Srinivasan, Christian Mumssen and Kristina Kostia. Fernández arrived accompanied by Foreign Minister Santiago Cafiero and Economy Minister Sergio Massa.

It may interest you: The health of Alberto Fernández: sixty minutes of anxiety in Bali that shocked the official entourage

Yesterday morning, after being received by the President of Indonesia, Joko Widodoand while he began to suffer the first discomforts of his health picture, Alberto Fernández had a fleeting meeting with the managing director of the IMF in which he told her that today they would deal with “the issue of flight attendants.”

Indeed, the President left for Indonesia with his mind set on asking Georgieva that the International Monetary Fund reduce the levels of surcharges and establish a new issuance of Special Drawing Rights (SDRs) to alleviate the economic and social effects of the war in Ukraine.

The IMF applies a surcharge – plus interest – to countries that receive credits above the amount they should receive in relation to the value of the quota they contribute to the multilateral credit organization. Argentina, due to the quota it pays to the Fund, received an excess credit (44,000 million dollars). And this excess implies an annual surcharge -approximately- of 1,300 million dollars.

The impact of the COVID-19 pandemic wreaked havoc on the economies of poor and middle-income countries, and the IMF board decided to approve an extra issue of Special Drawing Rights for 650,000 million dollars. Argentina, towards the end of August 2021, received 4,300 million dollars that swelled the items of the Central Bank.

“In the last telephone conversation I had with Kristalina Georgieva I asked her these two things”, said the Head of State days ago during a talk with Argentine journalists in Paris. Today he returns to put the claims on the mass in the meeting that began minutes after 5:00 p.m. in Bali (6:00 a.m. in Argentina).

The Argentine President at the G20 in Bali
The Argentine President at the G20 in Bali

“First of all, I pointed out to Kristalina Georgieva how the effects of the war were hurting the whole world, not just Europe, not just Russia and Ukraine, but to Argentina, specifically, the war cost 5,000 million dollars. 5,000 million dollars that we had to pay more as a result of the cost of energy, as a result of the cost of fertilizers, as a result of the cost of food. Y I once again raised the need for them to once and for all check the surcharges that in our opinion they are very unfair mechanisms that affect the countries most punished by debts and that in a case like Argentina it is also the consequence of an absolutely irresponsible indebtedness that was taken”, explained Alberto Fernández in statements to the press.

Despite the President’s insistence, the IMF director is not expected to grant any of the claims. On the one hand, the surcharges are used to pay the bureaucracy of the Monetary Fund, and the extra issuance of SDRs due to the war in Ukraine is a working hypothesis that is resisted by the staff of the organization, because they consider that it can multiply inflation at world level.

Meanwhile, a team from the multilateral credit organization is in Argentina seeking to close -together with officials from the Ministry of Economy- the review of the third quarter to send USD 5.9 billion to the country before the end of the year.

Keep reading:

Alberto Fernández: “I had a decompensation due to erosive gastritis that caused bleeding and a significant drop in pressure”
Cristina Kirchner and Alberto Fernández resumed dialogue after the health imbalance suffered by the President

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