Thursday, February 6, 2020

"Merkel And Pope to the Rescue: How Peronist President's EU Charm Offensive May Save Argentina"

Following up on yesterday's "Things That Make Société Générale's Albert Edwards Happy: Argentina in Extremis Edition".
From Sputnik:
Argentina's Peronist government has launched a charm offensive in Europe aimed at convincing major EU states to support Buenos Aires during its upcoming debt negotiations with the IMF. According to Argentine political analyst Gonzalo Fiore Viani, Angela Merkel and Pope Francis could play crucial role in solving the country's debt crisis.
A summit with French President Emmanuel Macron on Wednesday in Paris marked the last leg of the European tour of Alberto Fernandez, the Peronist president of Argentina , who is seeking to restructure the country enormous debt and revive its economy. Macron vowed to stand by Buenos Aires and team up with the International Monetary Fund (IMF) and other partners to help Argentina to get back on the growth trajectory.

Previously, Fernandez held meetings with Pope Francis in the Vatican, Prime Minister Giuseppe Conte in Italy, Chancellor Angela Merkel in Germany as well as President Pedro Sánchez and King Philip VI in Spain ahead of debt renegotiations with the IMF.

Argentina's external debt amounts to $335 billion - which is over 90 percent of its gross domestic product - including $44 billion borrowed from the IMF. In addition to its 40 percent poverty rate the country is struggling with rapidly growing inflation which reached 53 percent in 2019. It is believed that if the IMF restructures the Argentine debt it would be easier for Fernandez to settle the dispute with other lenders.
'Fernandez & Merkel Have Known Each Other Since 2005'
"I believe there are strong chances that Alberto Fernandez can get the votes the Argentine government needs to renegotiate the debt with the IMF," says Gonzalo Fiore Viani, a lawyer and political analyst from Cordoba, Argentina.
He emphasises the role of Germany in solving the Argentine debt dilemma. According to sources, cited by Merco Press, German Chancellor Angela Merkel vowed support to Buenos Aires' debt renegotiation strategy outlined by Argentine Minister of Economy Martin Guzman. German industry giants including Volkswagen, Siemens, Hamburg Sud, Hydro DB, Lindal Group, and Smart Infrastructure also lent a sympathetic ear to Fernandez 'plans with Volkswagen pledging to invest $800 million in the Argentine economy.....MORE
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