Sergio Massa asked the IMF again about the overloads: “It’s a regressive policy”

Minister of Economy, Sergio Massahe asked the IMF why it did not review its policy of the surcharge, realizing that it was a “regressive” decision, because it falls on the countries with the greatest financial needs, such as Argentina.

The Stewardesses -also called additional costs- are the additional costs it applies IMF on certain loans it approves, which increases interest rates.

According to Mass, that measure it is also “pro-cyclical, as it makes economic recovery even more difficult and ability to pay and opaque, because countries rarely know they will have to pay additional fees”.

In return, he pointed out: “Already existing asymmetries in financing conditions between developing countries and advanced economies have worsened tightening of interest rates in many advanced economies”.

consequences of war

During the presentation on the second day of the exhibition G20 summit of ministers of finance and governors of central banks, in the Indian city of Bengaluru, the head of the Palace of Finance also pointed out that the pandemic, the war in Ukraine and the drought due to climate change “condition global food security and economic development”.

these circumstances “They not only threaten short-term recovery, but also undermine the ability of countries to meet long-term development goals.”he emphasized.

Massa also indicated that sustainable financing “represents challenges especially for developing countries” and that many of them “do not have access to climate change grants and financing on favorable terms to invest in mitigation, adaptation and energy transition.”

Consequently, he emphasized the need to “increase resources for investments in social and sustainable infrastructure”, which he considered a “key factor” for economic recovery, competitiveness and response to structural challenges such as climate change, urbanization and digitization. In this sense, he highlighted the role multilateral credit banksbut he called for “other financing alternatives to be discussed” and for “financial relief to be provided to countries in need”.

“We have at this table countries rich in economic and financial resources and other countries rich in ecosystem resources. Our country is a financial debtor, but an environmental creditor. The natural heritage and biodiversity of our countries serve humanity, which makes us unrecognized creditors in relation to financial creditors,” the minister pointed out.

And at the same time he asserted: “The same countries that in these regions ask us to put the seriousness of war damage on the agenda, give their directors a mandate in multilateral organizations so that we, who were the financial victims of this damage, are heard on those forums.

Mass’s agenda in India continues this Friday with a bilateral meeting with France’s Minister of Economy, Finance and Industrial and Digital Sovereignty, Bruno Le Maire. He will later meet with his counterpart from the Brazilian Treasury, Fernando Haddad; with the Managing Director of World Bank Operations, Axel Van Trotsenburg; and with the Federal Minister of Finance of Germany, Christian Lindner.