Inside an envelope and complying with diplomatic protocols, the US embassy received on Thursday a letter signed by six presidents of the region in which they requested "with respect and affection" to "support Argentina in the negotiations that the Government is carrying out before the International Monetary Fund.
"The common and shared principles in the Americas, around democracy, human rights and social inclusion should guide us to find a quick and effective solution for Argentina," signed a document that had been negotiated by Foreign Minister Santiago Cafiero, and that revealed -without giving details- this week, President Andrés Manuel López Obrador. The Mexican president, who plans to come to the country in September, signed the letter, which criticizes without naming the government of Mauricio Macri for having requested the loan to the Fund of US $ 57,000 million.
The letter is also signed by Luiz Inacio Lula da Silva (Brazil), Luis Arce (Bolivia), Mario Abdo Benitez (Paraguay), Gustavo Petro (Colombia), and Gabriel Boric (Chile). The absence of Uruguayan Luis Lacalle Pou is striking. But the government explained that what the Foreign Ministry did was contact the governments of the six most important economies in the region. "We need the United States to get involved not only because it's a relevant issue but it's also fair," they said close to Cafiero.
In the last hours, Lula expressed "very concern" about the Argentine situation.
The full text of the letter is as follows:
"The countries of the region are closely following the situation that Argentina is going through, as a result of the combined effect of the over-indebtedness in the previous administration, the pandemic, the impact of the war in Ukraine and the consequences of the greatest drought that the country has suffered in the last century....
... The Argentine government has been working hard to deal with the exceptional debt owed to the International Monetary Fund (IMF). This is the largest loan granted in the history of the organization, which had the endorsement of its main shareholders, for an amount exceeding 1,000 percent of its quota...
... Without prejudice to the above-mentioned exceptionality, Argentina's willingness to honour its multilateral commitments has been undoubted. Since the approval of the new program with the IMF that was duly approved by the National Congress, Argentina met the agreed goals and consolidated a process of growth, job creation and fiscal order.
... The exogenous shock of the drought – by definition completely alien to the will of the Argentine government and its people – has caused a loss of foreign currency of more than 20% of the country's exports, with a severe effect on international reserves that has complicated the normal functioning of the exchange market, reduced tax resources and had an impact on inflation.
.... Extraordinary circumstances merit extraordinary responses, as extraordinary as the debt overhang caused by the IMF loan, which is one of the main causes of the current situation. We are looking for a solution that allows the growth of Argentina, the generation of employment and the increase of its exports. All of them necessary conditions so that the country, in turn, can face the maturities of the aforementioned loan.
... Argentina has asked the IMF for a review to overcome the difficulties presented by this atypical year and to serve as a bridge until several ongoing projects mature, in particular those related to energy and mining, which will have a significant impact on the country's balance of payments...
... The leaders of the region believe that it is possible to find a consensual solution that will allow Argentina to navigate the situation in which it finds itself. It is neither feasible nor desirable that demands that do not properly consider changing circumstances should plunge Argentina into an unnecessary crisis that interrupts the ongoing recovery. The IMF's inflexibility to revise the parameters of the agreement in the context of the drought described runs the risk of turning a liquidity problem into a solvency problem.
... For these reasons, we respectfully and affectionately ask you to support Argentina in the negotiations it is conducting with the aforementioned body. The common and shared principles in the Americas, around democracy, human rights and social inclusion should guide us to find a quick and effective solution for Argentina....