The Purchase Guarantee Facility provides for cooperation between Banco do Brasil, BNDES and the Development Bank of Latin America and the Caribbean
The Argentine Economy Minister, Sergio Massa, informed on Monday (28) that the two countries have reached an agreement worth 600 million dollars to finance Brazilian exports to the neighboring country.
The declaration took place at Palazzo Planalto, in the presence of the Minister of Finance, Fernando Haddad, after a meeting with the president Luiz Inácio Lula da Silva.
An agreement was already being worked out between the two countries between Argentina and Brazil to guarantee the continuity of exports. Argentina is experiencing a serious financial crisis and a shortage of dollars, which makes it difficult to purchase Brazilian products.
The purchase guarantee mechanism, according to Massa, provides for cooperation between the Banco do Brasil, the National Bank for Economic and Social Development (BNDES) and the Development Bank of Latin America and the Caribbean (CAF).
According to Haddad, the idea is that when the Brazilian exporter sells to Argentina, he is paid by BB, who will receive the CAF guarantee.
The measure is beginning to be valid, for example, for the export of foodstuffs and car spare parts.
“Banco do Brasil will guarantee Brazilian exports, CAF will guarantee Banco do Brasil. As the minister said, when you export auto parts to Argentina, you guarantee foreign currency for Argentina. It was a way CAF found to restore trade flow without Argentina by giving up yuan reserves”Haddad told the G1 website.
The CAF, according to the ministers, supported the idea of the operation. The countries will meet on 14 September with the CAF to provide the documents.
river fleet
The Argentine minister also specified that talks have resumed to increase river exchanges between the two countries, which were interrupted during the government of the former president. Jair Bolsonaro (PL).
“We have resumed the joint Brazil-Argentina initiative to carry out the construction of our river fleets, our river merchant navy, a process that Brazil and Argentina had built over 20 years and which had been interrupted by the Bolsonaro government due to Brazil’s decision not to renew the deal”he has declared.
Source: Terra
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