Lula receives Fernández and should propose credit for exports from Brazil to Argentina

The release of credit to finance exports from Brazil to Argentina should be the main agenda of Tuesday’s (2) meeting between the two presidents.

Luiz Inácio Lula da Silva (PT) and his economic team will receive Alberto Fernández at the Planalto Palace.

The two heads of state arranged the meeting directly in a telephone conversation last Thursday (27).

The information about the credit line was given by the executive secretary of the Ministry of Finance, Gabriel Galípolo, in an interview with GloboNews.

He explained that the issue had been discussed for some time.

The proposal is to finance Brazilian companies that sell to Argentina due to the shortage of foreign exchange in the neighboring country.

Galípolo highlighted the Argentine market as important for Brazil, especially in negotiating industrialized products with high added value.

He said that about 210 Brazilian companies maintain commercial relations with Argentina.

Galípolo said that the lack of a financing mechanism for Brazilian exports and Argentine imports resulted in a loss of US$6 billion in the trade balance between the two countries in the last five years.

The amount, according to him, was directed to China, which has made financing possible.

In a visit to Brazil in March, a team of representatives of the Argentine government requested help to finance the payment of Brazilian exports to the Argentine market.

The answer may come in this Tuesday’s meeting.

In the first two months of the year, Brazilian exports to Argentina increased by almost 20% compared to the same period last year.

As stated by the secretary, Brazilian exporters complain about the delay in payment.

“It is important to state that these export lines are financing that pay directly to Brazilian companies”, Galípolo clarified.

For him, the risk is lower than traditional financing because the demand for their products exists.

With information from Gazeta do Povo