Argentina’s Economy Minister Sergio Massa Secures Wide Range of Investments, U.S. Support for Initiatives to Strengthen the Economy, and Continued IMF Support
Debt relief deals, lithium mining and production, auto manufacturing, the energy industry, access to technology are all part of a comprehensive and aggressive plan to support the Argentine economy
WASHINGTON, September 14, 2022 /PRNewswire/ — Argentine Economy Minister Sergio Massa announced that after a week of meetings with U.S. officials and leaders, he has made significant progress in strengthening his country’s economy, which is currently experiencing historically high inflation and other pressures. The minister’s statement came at the end of a week-long delegation, his first state tour since taking office. He was joined by the Ministers of Mines, Fernanda Ávila, and of Energy, Flavia Royon.
Throughout the week, Minister Massa secured investments from a number of major US corporations and global financial institutions. The investments will be used to support key economic development initiatives, helping to spur efforts to foster long-term economic development in Argentina. Ads included:
IMF: IMF management hailed Massa’s firm commitment to achieving the goals set out in his extended agreement with the country, including reducing budget deficits, accumulating reserves and establishing a sound macroeconomic framework.
Inter-American Development Bank: A new financing plan totaling nearly $5 billion through the end of 2023 will allow Argentina to launch key programs in infrastructure, health, water and tourism
Extraction and production of lithium: Rio Tinto – Investment of $190 million for the annual production of 3,000 tonnes of battery-grade lithium carbonate; LIVENT – $1.5 billion to develop lithium production
Energy sector: Companies such as BP, Chevron, Exxon and Total Energy pledge to further support Argentina’s role in the energy sector, including exploration and production at Vaca Muerta as well as additional sites
Amazon: $35 million to create new local areas that will boost access to technology and create jobs in the knowledge sector
VW: $250 million expansion of the country’s Amarok pickup production line and Ducati motorcycle assembly plant
Minister Massa reported on his trip saying: “Increasing our exports of proteins and minerals such as lithium, copper and gold, as well as playing a greater role in the energy market, are central objectives for Argentina, as they help us contribute to the global agenda of food security and energy security. Fiscal order, the accumulation of reserves and the growth of Argentine exports are the three main objectives that we have set ourselves for the coming months.
Massa also met with US Treasury Secretary Janet Yellen to discuss policies relating to US-Argentina relations, including food and energy security, foreign fiscal policies and the global economic context of the war in Ukraine.
Following the Minister’s trip to the United States, a number of positive indicators were reported. The week ended with an increase in international reserves, new access to international financing and positive reports from the Central Bank of Argentina. Argentinian stocks closed higher and the MEP dollar closed at $269.56, the lowest since Massa took office and from $360 before he took office. Since Massa’s appointment, parallel dollars have accumulated a decline of $55 on average. And with the official exchange rate rising by 7% per month, the spreads between the Official and the Parallel have narrowed sharply, from 140% to 80% of the ranges.
Argentinian stocks and bonds on Wall Street also continue to show a marked uptrend, led by state-owned energy company YPF with a 100% increase in US certificates of deposit (ADR) over the past 45 days and other energy companies and banks showing an ADR of 40%. increase on average over the same period. Moreover, Argentine bonds stabilized at values 20% higher than last July.
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SOURCE Instituto Nacional de Promocion Turistica