Ezequiel Burgo
05/23/2021 12:11 AM
Clarín.com
Economy
Updated 05/23/2021 12:11 AM
The United States, Europe and Japan are
seeking Argentina to provide explanations on the treatment of the
debt
it grants to
China
.
Specifically, if the Alberto Fernández government requested or will request from Beijing the same
conditions
to refinance the
bilateral loans
that it requested from the other countries, arguing that it does not have sufficient reserves to face all the payments at the same time.
In the maturity schedule, it indicates that Argentina must pay China US $ 445.6 million this year, a figure similar to what it owes Germany and Japan in the Paris Club.
The countries that make up this body demand equal treatment.
They do accept that the IMF or the World Bank have priority when it comes to collecting.
But not that Argentina pays China in a timely manner while Beijing does not have the same gesture
.
Official, diplomatic and market sources that closely follow the debt negotiations between Argentina and foreign bondholders, but also with the IMF and the Paris Club, confirm this information.
The
claim
was heard even on the
tour
by
Europe
of President Alberto Fernandez and Economy Minister Martin Guzman.
Argentina negotiates with the Paris Club the payment of a debt of US $ 2.4 billion
.
The deadline expires on May 30 and then runs for a period of 60 more days.
If the obligation was not canceled on July 31, it will default.
The Paris Club countries explained to the President that they are willing to give Argentina more time.
As long as you sign a program with the IMF and an article IV
.
It is a formality since the Ministries of Economy of each country evaluate why someone is unable to pay a debt and if they cancel others at the same time.
To establish these judgments they are based on Article IV of the IMF.
Another issue on the table in the Paris Club with Argentina, in addition to the Monetary Fund, is the China issue.
Diplomatic sources in Europe and other countries indicate that if the Paris Club accepted that Argentina extended the cancellation of the debt with that organization while paying China
"it could set a precedent with uncertain outcomes
.
"
"For the members of the Paris Club, it would not be
fair
if Argentina proposed the extension of payment of its debts, while continuing to pay other creditors outside the club,"
said the Japanese ambassador to Argentina, Takahiro Nakamae, to the site elDiarioAr this week.
An Argentine official, who asked not to reveal his name, admitted for his part that bilateral debts between countries have
"the same rank of hierarchy
.
"
Global debate: Chinese put pressure
There are governments that have asked Argentina to share what treatment it grants to China when it comes to complying with the payment of its debts and whether it has requested or will request a restructuring of maturities as requested by the Paris Club.
Except for Germany and Japan, all the countries within this body expect lower payments than Argentina should make to China.
Argentina's obligations to Beijing this year are US $ 445.5 million.
They correspond to bilateral loans.
In
July
expire
three payments
.
But it has already canceled maturities in
January, March and April
for more than US $ 100 million.
The total amount of debt with China is about 2,666.6 million dollars.
The debate about the
terms and conditions
of
contracts and loans
from
China
accelerated with respect to how the pandemic had been developing in recent years: Beijing established certain priority when collecting their debts to other countries. This is
stated in
a recent work by the renowned economist,
Anna Gelpern
(Georgetown University), who examined more than 100 contracts in 24 countries including Argentina, Venezuela, Ecuador, as well as Africa and Asia. Found that all of them, since 2014, have
confidential clauses
that make it more difficult for debtors to change the settlement terms.
The work even tells that the Chinese Development Bank threatened the previous Argentine government with canceling a railway project when it proposed to abort the development of the dams in
Santa Cruz
.
Gelpern is one of the most renowned academics on sovereign debt issues and has closely followed the Argentine case in recent decades.
This week he exhibited and testified about his work on
Capitol Hill
.
What will Argentina do
Diplomatic sources in Buenos Aires explained that the Chinese question
"is not definitive for what Argentina must resolve within the Paris Club, but it is talked about".
In the Argentine government they admit that the issue is present, although they seek to tone it down.
They even argue that from a technical point of view, the comparison of debts between the countries of the Paris Club and China
"does not correspond, it is comparing pears with apples
.
"
Washington, Paris, Berlin and Tokyo
do not think so.
On Wednesday, Fernández would speak with
Angela Merkel
by videoconference.
Argentina agreed with the Paris Club to pay the debt that it carried from 2001, only in 2014. Axel Kicillof was Minister of Economy.
After this arrangement,
a single contract
was closed
with an export agency
(Japan Bank for International Cooperation)
.
In 2017, to provide brakes for trains.
This week Emmanuel Macron announced that the Paris Club countries have waived
Sudan's
interest on the debt. Sudan has a debt of about US $ 50,000 million, more than half with countries bilaterally. China joined the gesture of the rest of the countries. Will Sudan be the mirror in which Argentina has to look to negotiate its debt?
