U.S. demands solving the issue of the pending debt Secretary of State John Kerry included it in his speech on the region;

La Nacion

U.S. demands solving the issue of the pending debt

Secretary of State John Kerry included it in his speech on the region; he will travel to Brazil and Colombia

 

Thursday, April 18, 2013

 

WASHINGTON (From our correspondent) – The government of Barack Obama argued yesterday that with Argentina there are “various issues” pending about which both governments must work, among them, he referred to the issue of the public “debt” and the payments pending to creditors.

 

The statement came from Secretary of State John Kerry, who also confirmed his imminent trip to Brazil and Colombia, anticipated days ago by LA NACION.

 

It was not only the words that the American chief diplomat used about “pending issues” with our country, but also the context in which they were said.  

 

It was the first time in which, formally, the official referred to issues on the agenda with Argentina since he took office to replace Hillary Clinton in February.

 

Kerry made those comments in the Capitol in a long appearance that took all day, and which will stretch on to tomorrow, in which he explained the main lines of foreign policy in this second term of Obama.

 

It was in that context where Rep. Gregory Meeks, Democrat from New York, asked his view of the region and the place that it holds on the diplomatic agenda.

 

Kerry began by confirming his imminent first trip to the region, with confirmed stops in Brazil and Colombia, and “possibly” other countries he didn’t identify.

 

While it was in that context that he admitted the “pending issues” with Argentina, above all in debt matters, about which he said that it’s necessary “to work.”

 

"I am very hopeful.  I’m preparing a trip very soon to the region, both to Colombia and Brazil as well as other countries, if time allows,” he began.

 

"He have had some questions, obviously with Argentina, ultimately, about some issues of debt and payments, about which we have to work,” Kerry said.  His trip to the region is scheduled for the middle of next week.

 

The comments from the chief of American diplomacy coincide, in the facts, with the imminent definition of stages of the process in which the so-called “vulture funds” are continuing against the country in the courts of New York.  But he didn’t mention any of that.

 

The United States has asked Argentina to “normalize its relations” with all the creditors and honor the adverse decisions issued by the arbitration tribunal of the World Bank (ICSID).

 

Washington’s complaint points especially to the rulings achieved in that tribunal by two American companies with interests in our country (Azurix and Blue Ridge).

 

Kerry reiterated Obama’s commitment to the region and the interest of the American president in making some visits.  He will soon go to Mexico, he said, a surprise announcement that he will visit “other countries” while not identifying them.  “I don’t recall now which ones.  In the South, I believe.  But he will go to the region,” he said.

 

"We will do everything possible to try to change the attitude of a number of countries (in the region) where we have had a kind of gap in relations over the course of recent years,” he said, without identifying them.  Local sources consulted by LA NACION said that Argentina wasn’t in the plan for now for a visit.

 

 

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The Group of 24, with its own voice

The Argentine delegation, led by Hernan Lorenzino, starts its activity today in Washington with a meeting of ministers of the countries that are seeking to widen their representation in the IMF.  Vulture funds and regulations, on the agenda.

 

Thursday, April 18, 2013

 

Hernán Lorenzino departed last night for Washington, leading the Argentine delegation to the joint meeting of the International Monetary Fund and the World Bank (WB).  While the focus of concern remains on the European crisis, the Argentine Economy Minister will maintain a full agenda, which will not part far from questions by the IMF over INDEC’s statistical measures and the pending resolution of the courts in New York on the demand by the vulture funds on the debt in default that didn’t enter the swap.

 

The head of the Palacio de Hacienda is scheduled to participate this afternoon in the meeting of finance ministers from developing countries making up the Group of 24.  The intention is to elevate to the Fund’s authorities a greater participation of votes from emerging countries in the organization’s arena of decision-making.

 

At night, there is a working dinner of finance ministers and heads of central banks from the G-20, with the presence of the heads of the IMF and World Bank, Christine Lagarde and Jim Yong Kim. In that forum, Argentina is scheduled to put forth the world threat that the vulture funds represent in the debt crisis of various countries and the need to expand regulations on risk ratings agencies.  Tomorrow there will be the G-20 summit, with an agenda whose core is the issue of jobs and inclusion, in the face of the Eurozone recession.

 

The lobby of the vulture funds also is seeking to feel its weight in the U.S. capital.  The ISDA, the association of investors in derivatives as well as insurance on debt bonds in default (CDS) has already put together months ago a counter-summit in London, where they took up and condemned the new regulations that the G-20 wants to impose.  Above all, those that are trying to be implemented in Europe and in particular on financial derivatives.  The Elliott fund, the main actor in the lawsuits of the vulture funds against Argentina, is part of this organization.

 

Lorenzino will take advantage, also, of his visit to Washington to speak on the progress made in the construction of a new national price indicator.  He will see to counteract, this way, the momentum from some members of the organization to sanction the country over the lack of reliability in its indices, mainly in prices.

 

In a speech before the summit, IMF chief Christine Lagarde alluded to Brazil questioning “the bottlenecks in ports, airports and highways” that are limiting the flow of merchandise, in her judgment.  “To improve infrastructure could greatly improve the situation in the country, and that is what we suggest be prioritized,” he said.  The ex-finance minister of France also suggested that Brazilian authorities address the issue of inflation in a manner that is “sensible, perhaps with monetary policy, which should now be under consideration.”

 

Lagarde vs. Brasil

 

Lagarde taking a position alludes to an issue in debate in Brazil, between those who argue that the Central Bank should raise interest rate to hold off inflation and those who oppose it, stressing stimulating growth.  Lagarde also opined about the statements Guido Mantega, finance minister of Brazill, denouncing the “currency war” launched by central countries, which are inundating emerging countries with currency (dollars and euros) and devaluing local currency (the real, in his case).  “At times he speaks with such passion that he uses strong words,” argued the head of the IMF, adding that “what he calls a currency war I call exchange rate concern, and I understand that it exists; but Brazil seems to be absorbing the flows of foreign capital well and the war talk is already dissipating,” she refuted.

 

For his part, commenting on the mid-year report from the World Bank, Augusto de la Torre, chief economist for Latin America, said that the region “is not now enjoying strong winds in its favor and has to increase productivity to get growth rates that can consolidate the process of social inclusion in course.”