Alberto Fernandez Warned In Davos That There Is No Room For Further Irresponsible Adjustments

2021-01-28   |   by CusiGO

Alberto fern รก ndez, Argentina’s president, warned the international monetary fund that he was negotiating $44 billion in debt refinancing with the fund to ensure “no more room for irresponsible adjustment.”. He said the cuts were not only impossible, but also “damaging the credibility of those who have to comply and those who provide false assistance.”. Argentina ended debt renegotiation with 99% of its private creditors last year.

Fernandez issued the warning at the World Economic Forum (WEF), which holds its annual meeting in virtual form in this edition. “During the pandemic, we had to deal with another equally devastating virus, toxic and irresponsible debt,” he said, adding that the IMF itself was partly responsible for the problem. However, the president of Argentina has pledged that the relationship with the current management of the fund, led by Kristalina Georgieva, is good and smooth, and that the new agreement between the two sides will incorporate a new macroeconomic perspective and a common understanding of the specific needs of the Argentine economy. “The dialogue with the IMF is ongoing and so far it has been very constructive,” he added. The president also said that the plan agreed with the fund “will be submitted to Congress to involve all political sectors in a development path with debt sustainability, social inclusion and transparency as national policies.”.

Fernandez has been trying to convey a positive image of Argentina to investors, even though this week the International Monetary Fund recalculated its forecast growth rate for 2021 and assured that the recovery was “faster than expected.”. As an example, the President talked about job creation: “we’ve registered 4500 jobs that didn’t exist before the epidemic, and we’ve recovered from industrial employment for five months in a row,” he said. He also defended his government’s commitment to sustainable recovery and was consistent with the Paris Agreement, saying: “future development is either green or not green.”.

For Argentina’s leaders, the epidemic has tested all paradigms. It is not a choice between economy and life to deal with the epidemic, but a “better and better life for the economy”. He also cited Pope Francis and economist Luigino Bruni and his book unhappy capitalism to defend ethical economy. “The moral imperative is to put the most vulnerable groups on the last and abandoned ones. Fraternity must be a new name for development and social peace and unity. ”

Faced with criticism of Russia’s Sputnik V vaccination schedule and its distribution in the country, Fernandez pledged that “the vaccine must be seen as a global public good.”.