Argentina, which failed to compete for the IDB presidency, is the main debtor of the regional bank

Ilan Godfajn, new president of the IDB AFP
Ilan Godfajn, new president of the IDB AFP

Argentina, which failed in its attempt to retain the presidency of the Inter-American Development Bank (IDB), is the main debtor of this regional bank.

The country, which will manage a vice presidency and management by agreement with the new president of the bank, Ilan Goldfajnhas the largest number of approved loans with USD 12,686 million, comfortably ranked first among its peers

“The IDB Group Strategy with Argentina 2021-2023 is structured around four strategic pillars: (i) poverty reduction and social protection for the most vulnerable; (ii) economic recovery and productive development 4.0; (iii) macroeconomic stability and effectiveness of public policies; and (iv) digital transformation as a transversal axis of development. Each axis also incorporates a diversity and gender approach; and environmental sustainability ”, indicates the page of the bank that Mauricio Claver-Carone led until his dismissal,

In terms of active portfolio, the country with the most projects is Brazil with 82, followed by Argentina with 75 and Paraguay with 41.

The Argentine government presented days ago the candidacy of Cecilia Todesca Bocco for the presidency of the regional bank; She is an economist who served as chief advisor to the Central Bank in the management of Mercedes Marco del Pont and as deputy chief of staff with santiago cafiero, among other public offices. Yesterday the government had to withdraw his nomination due to the lack of consensus.

Cecilia Todesca Bocco
Cecilia Todesca Bocco

in dialogue with Infobae, Todesca Bocco indicated: “Argentina was the last country to present candidacies because we prioritized dialogue to see if there was a consensus figure. That did not happen and that is why we delayed our candidacy. The country had a very defined position, which was to present the candidacy of a woman. In the six decades of the IDB’s history, this is the first time this has happened. I feel that this candidacy is not personal but collective, it summarizes the work and power of all the women in the region. Women must compete equally in all spheres and that does not happen, neither in the region nor in the IDB”.

“The other four candidates have very good resumes, but Argentina made a strong bet: instead of talking about gender, it nominated a woman. In the work agenda that we proposed, we incorporated one of the strongest points of feminist economics. But in addition to that, we have a structural vision for the region and its possibilities in this complex world. It is a region of peace where there is food, there is energy, there is mining, there is science and technology, there is a lot of talented young people. We are glad to be giving this discussion. It seems like a healthy debate to us,” said the Argentine candidate, who came to this race after the government’s failure to place Gustavo Belizthe former Secretary of Strategic Affairs who, at the same time, was in charge of maintaining the relationship with the IDB.

Béliz was the president's candidate for the IDB
Béliz was the president’s candidate for the IDB

Due to Béliz’s disputes with Claver-Carone, amplified by the president Alberto FernandezArgentina suffered delays in the disbursement of several credits, until the arrival of the minister Sergio Massa and the departure of Béliz from the government improved this dynamic. Thus, the Government was able to unlock for the first time a freely available credit for USD 700 million that was added to the weak reserves of the Central Bank and, in addition, the bank accelerated the announcement of other loans linked to investment projects.

The amount approved so far this year for projects for Argentina is USD 1,745 million and the board of directors would endorse another two for some USD 600 million before the end of the year.

After Argentina, in terms of the number of loans approved, is Brazil, with USD 9,288 million. The former president of the central bank of that country and current director of the International Monetary Fund (IMF) for the region, Ilan Goldfajnwas appointed to replace Claver-Carone.

Ilan Goldfajn, the candidate of Brazil REUTERS/Adriano Machado/File Photo
Ilan Goldfajn, the candidate of Brazil REUTERS/Adriano Machado/File Photo

The power of votes

The United States has 30% of the votes on the board, the donors (Europeans, Israel and others) 29%, Argentina and Brazil 11% each and Mexico 7 percent. In Washington, it is expected that once the US Treasury decides on a candidate, the donor countries support him, for which he would already account for almost 50% of the total, compared to the other 50% that is distributed among the other 26 countries in the region.

Chile, which has approved loans from the IDB for USD 945 million, also presented its own referent to succeed Claver-Carone; it was about Nicolas Eyzaguirreformer Minister of Finance of the governments of Ricardo Lagos Y Michele Bachelet. Eyzaguirre also held the position of auditor of the Fund for Latin America in turbulent times with Argentina, while Kirchnerism refused to comply with the revisions of Article IV and manipulated public statistics at the same time that Todesca Bocco accompanied Marcó del Pont in the BCRA as its chief adviser.

Nicolás Eyzaguirre, Chile's candidate for the IDB REUTERS/Rodrigo Garrido/File
Nicolás Eyzaguirre, Chile’s candidate for the IDB REUTERS/Rodrigo Garrido/File

The government of Mexico, which had presented the former Secretary General of ECLAC as a candidate, Alicia Barcena, withdrew it to apply for Gerardo Esquivel Hernandez, vice president of the central bank and important academic of his country. Mexico has loans for USD 1,799 million at the IDB.

The fifth candidate was the economist gerald johnson by Trinidad and Tobago, which has approved credits for USD 521 million; Johnson was an IDB official and until now served as a senior consultant to the Jamaican Ministry of Finance.

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