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Brazil confirmed that they will offer credit to Argentina for trade between the two countries

2023-05-01T22:26:52.746Z


The executive secretary of the Brazilian Ministry of Finance assured it. This Tuesday Alberto Fernández and Sergio Massa together with other ministers travel to Brasilia to see Lula and ask him for help.


The executive secretary of the Brazilian Ministry of Finance, Gabriel Galípolo, confirmed this Monday that President Luiz Inácio da Silva will offer his colleague Alberto Fernández a

line of financing to Brazilian companies that sell in Argentina.

He told Globonews, just

a fleeting trip away that Alberto Fernández will undertake to Brasilia this Tuesday

at noon with the Minister of Economy, Agriculture and Production, Sergio Massa, and more than officials, in search of direct help and against the clock for the serious lack of of foreign currency reserves that Argentina has.

In this case it would be to be able to pay for imports that come from Brazil, for at least 5,000 million dollars.

Since Alberto Fernández's surprise phone call to Lula last week, Massa's teams and the Brazilian president

have been negotiating against the clock.

This Monday Massa and his colleague Fernando Haddad, with his team and the Brazilians, evaluated the different financing options for Brazil to give quick and concrete support to the battered Argentine finances, currently subjected to a new spiral of crisis, with a strong high of the blue dollar against the peso which, according to the Brazilian press

"melts".

Galípolo explained to his country's journalists how the drought suffered by Argentina affected

approximately 40 percent of the value of exports, some 17,000 million dollars.

And he said that now the Lula government was studying financing for Brazilian companies that sell to Argentina,

which would have a positive impact on companies that import services and goods from Brazil.

He estimated that there are

more than two hundred

companies that sell and Galípolo, who confirmed this line of credit as one of the possible ways to help someone who is a good partner of his country, especially in industrial products.

"In the last five years, due to

the lack of financing

from Brazil for exports that go to Argentina,

we have lost 6,000 million dollars

in the commercial trade balance with Argentina for China (that is, they were redirected to China)," he said, but he also spoke of a basic problem when saying that the new administration of the PT was "studying how we can export, given the balance of payments restrictions that exist today in Argentina."

For that matter, the Brazilians

gave the thumbs up to the Argentine proposal to establish a common

alternative currency to the dollar in bilateral and regional trade.

Actually, he was rejected by all the neighbors- 


Last week there was an unexpected telephone dialogue between Lula da Silva and Alberto Fernández, about which the Argentine Presidency

commented on generalities for a duration of 45 minutes.

It was the first communication made public between the two since the Argentine president reported that he was stepping down from running to be re-elected, a move that, given the delicate situation of the economy, and the gestures of Cristina Kirchner, left Massa virtually in charge of the Government. .

Meanwhile, from Economy they remembered this Monday that Massa spoke about this type of financing for exporters that has a positive impact on the Argentine coffers with his Brazilian counterpart, Fernando Haddad, in the meeting they held in February.

It was in Bengaluru, India, in the framework of a G20 meeting.

On Friday, and as

Clarín

anticipated , after it was reported in Brazil by O'Globo, it was learned that Alberto F. Massa and Cafiero were traveling to ask Lula for help.

By then, the vice president of that country, Geraldo Alckmin, Haddad and Massa and their team were already talking about the credit they are seeking. 

Meanwhile, Ambassador Daniel Scioli, who said he was a candidate, had to prepare his return to Brasilia from Buenos Aires.

He revealed that at least one of the meetings, if not all, will be at the Palacio de la Alborada, the presidential residence of the president of Brazil. 

More officials were added to the trip than originally counted,

Massa and Foreign Minister Santiago Cafiero

.

Fernández's couple,

Fabiola Yañez, Massa, the chief of staff, Agustín Rossi;

the Minister of Social Development, Victoria Tolosa Paz;

the spokesperson, Gabriela Cerruti

;

the secretary of the presidency, Julio Vitobello, who does not take off Fernández.

For his part, Massa, takes the trusted team with which he is negotiating at this time what is going to be asked of Brazil and what are the real possibilities.

Traveling with him are his chief advisors, Leonardo Madcur and Lisandro Cleri, his trusted man, who now, incorporated into the Central Bank's board of directors, closely follows in the footsteps of the entity's president. 

Source: clarin

All news articles on 2023-05-01

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