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Argentina will honor economic goals agreed with IMF: new minister

AFP

Argentina’s new economy minister said Monday the country would honor fiscal deficit goals and other commitments made under a deal struck with the IMF to refinance a debt of some $44 billion.

Under the agreement negotiated by Silvina Batakis’ predecessor Martin Guzman, who resigned suddenly nine days ago, Argentina committed to reducing its fiscal deficit from 3.0 percent of GDP last year to 2.5 percent in 2022, 1.9 percent in 2023 and 0.9 percent in 2024.

“The goals agreed with the IMF are maintained,” Batakis said in Buenos Aires at her first press conference since taking office a week ago.

“It is an agreement we signed as a state and we must comply.”

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In 2018, under the government of conservative President Mauricio Macri, the International Monetary Fund granted its biggest-ever loan of $57 billion to Argentina.

The country received $44 billion of that amount and Macri’s successor Alberto Fernandez refused to accept the rest.

As the country struggled to repay its debt, a refinancing agreement was reached this year after protracted negotiations.

Guzman resigned suddenly on July 2 amid a power struggle between Argentina’s president and vice president, sparking fresh uncertainty in Latin America’s third largest economy.

The peso fell sharply last Monday against the US dollar after Batakis’ appointment.

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On Monday, the 53-year-old said there was a need to “give order and balance to the public finances,” and vowed that “we will not spend more than we have.”

Among her proposals: to reduce energy subsidies, which in 2021 amounted to $11 billion or 2.3 percent of GDP, by applying a sliding scale to prices for gas and electricity based on income.

In 2020, the Argentine economy contracted 9.9 percent before rebounding the following year by 10.3 percent.

For this year, the IMF predicts growth of 4.0 percent.

At the time the refinancing agreement was reached, Argentina’s inflation was projected to reach 52 percent in 2022 — already one of the highest in the world.

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Since then, the war in Ukraine has sent prices soaring worldwide, and Argentina marked year-on-year inflation of 60 percent in May.

“The agreement was signed before the rise in global inflation,” said Batakis, adding a new estimate for 2022 was being compiled.

“It is a methodological issue we are evaluating, not a shifting of the goal,” she insisted.

A survey by Argentina’s central bank of projections for 2022 inflation put the rate at some 76 percent.

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International

UN warns Venezuela earthquakes could affect up to 6.76 million people

Up to 6.76 million people could be affected by the devastating earthquakes that struck Venezuela on June 24, according to an assessment released by the International Organization for Migration (IOM), a United Nations agency.

The organization said the projections are based on available population data and damage assessments, and include up to two million people living in Caracas, the country’s capital.

The estimates highlight the potentially massive humanitarian impact of the disaster, the IOM warned.

Entire buildings collapsed in La Guaira, a coastal area north of Caracas, following the powerful twin earthquakes that reached magnitudes of 7.2 and 7.5 on Wednesday.

The national death toll has risen to 920, while rescue teams continue searching for people trapped beneath the rubble in coastal regions and other affected areas.

UN humanitarian chief Tom Fletcher told AFP on Friday that more than 50,000 people were reported missing.

The IOM also revealed that it worked with Microsoft’s artificial intelligence laboratory on an initial satellite mapping analysis, which showed that 31.5% of buildings in the town of Catia La Mar had suffered damage.

Authorities and international rescue teams continue operations as Venezuela faces one of its largest humanitarian emergencies in recent years.

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International

United Nations Coordinates Relief Efforts as Venezuela Death Toll Rises After Twin Quakes

United Nations Secretary-General António Guterres on Thursday expressed his condolences to the people of Venezuela following the two devastating earthquakes that struck the country and highlighted the ongoing coordination between UN humanitarian teams and interim President Delcy Rodríguez.

Speaking during the UN’s daily press briefing, spokesperson Stéphane Dujarric said Guterres was deeply saddened by the loss of life and widespread destruction caused by the disaster.

“The Secretary-General is deeply distressed by the loss of life and the widespread devastation caused by the earthquakes that struck Venezuela yesterday. He extends his heartfelt condolences to the families of the victims and wishes a speedy recovery to those injured,” Dujarric stated.

Venezuela was struck on Wednesday by two powerful earthquakes measuring 7.2 and 7.5 in magnitude. According to official figures, the disaster has left at least 164 people dead and 971 others injured.

Dujarric noted that preliminary reports indicate significant damage across several states, including the capital, Caracas. Numerous casualties have been reported, while other individuals remain trapped beneath collapsed structures or are still missing.

“Critical infrastructure has been damaged and essential services have been disrupted,” the spokesperson said.

The United Nations confirmed that its humanitarian team remains in close contact with interim President Delcy Rodríguez and other relevant authorities as emergency operations continue.

To support relief efforts, the UN has established a coordination center in Caracas and is assisting local authorities to ensure that humanitarian aid reaches affected communities as quickly and efficiently as possible.

Guterres also welcomed the expressions of solidarity and offers of assistance from countries around the world that responded following news of the disaster, underscoring the importance of international cooperation in addressing the humanitarian emergency.

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International

OAS Secretary General Pledges Regional Assistance Following Venezuela Quake Disaster

The Secretary General of the Organization of American States (OAS), Albert Ramdin, said on Thursday that the “hemispheric community” stands ready to provide “full support” to Venezuela and its people following the powerful earthquakes that struck the country overnight, leaving at least 164 people dead and nearly 1,000 injured.

Speaking at the conclusion of the OAS General Assembly, Ramdin expressed solidarity not only with Venezuela but also with Colombia, Curaçao and Aruba, where the tremors were also felt.

“Above all, our thoughts are with these peoples,” he said during his remarks.

Ramdin noted that while many details about the disaster are still emerging, countries across the hemisphere are prepared to assist Venezuela as it responds to the crisis.

“Much remains unknown at this stage, but the hemispheric community will be ready to support the people of Venezuela during this very difficult time,” he stated, reiterating the organization’s commitment to helping those affected.

According to updated information released by the Venezuelan government, the powerful earthquakes have been followed by at least 30 aftershocks. Authorities have also reported extensive structural damage, including numerous building collapses in La Guaira, the area considered hardest hit by the disaster.

Rescue efforts are currently focused on La Guaira, where emergency teams continue searching for survivors trapped beneath the rubble as officials assess the full extent of the damage.

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