Brazil and Argentina will sign an agreement to finance exports. This agreement provides for an opening of credit from Brazilian banks to Argentine importers and also the creation of funds by the Brazilian government to guarantee the payment of loans 

During Lula's trip to Buenos Aires, the governments of Brazil and Argentina will sign an agreement to finance Brazilian exports in operations with guarantees from the neighboring country and with international liquidity, to rekindle trade between these two countries, he told Reuters , a source from the Brazilian government who participated in the negotiations. 

This agreement provides for the opening of credits from Brazilian banks to Argentine importers and the creation of fund plans by the Brazilian government to guarantee the payment of loans. 

According to the source, in this operation, the bank will pay directly to the Brazilian exporter, with the guarantee of the National Treasury, however, Brazil will receive the same amount from Argentina, deposited in New York, with securities of international liquidity. 

“It could be Chinese bonds, it could be purchase contracts and gas, wheat. Something with international liquidity that guarantees that, in case of non-payment by the Argentine importer, Brazil can access it to compensate this non-payment”, said the source. 

TOYS

The agreement also provides for the guarantee that companies in Brazil will be able to withdraw funds from Argentina without any difficulty. Without foreign exchange, the country has controlled the outflow of funds from other foreign companies, which should no longer happen in Brazilian companies. 

In addition to all this, this agreement also provides for the organization of a working group for the creation, in the medium and even long term, of a single clearing account for South America and along the same lines as the one negotiated now with Argentina, but still more systematized and with a governance that authorizes the country's access to resources, if it complies with certain rules, such as one-digit inflation and not being in default.

single currency

The Brazilian government should ask that the memorandum on financial integration, which will be signed this Monday, in Buenos Aires, by President Lula and Argentine Alberto Fernandez, include an excerpt that makes it clear that discussions on common financial units between the two countries will not be a single currency. 

The new unit, which may be called Sur (South in Spanish), will be used for financial and commercial transactions for both countries, and not to replace the Brazilian real or the Argentine peso. 

Brazil's objective with this explicit request in this agreement is to defuse the noise caused by the news of the possibility of creating a common South American currency, that is, to clarify that the Sur will not replace any type of currency. 

“We are racking our brains to find a solution, something in common that will allow us to increase trade. Argentina is one of the countries that buy manufactured goods from Brazil, and our exports to Brazil are falling. It involves overcoming their difficulties, we are thinking about several possibilities”, explained Haddad.