• About Us
  • Contact Us
  • Write For Us
SMYE HOLLAND NEWS
  • Home
  • News
  • Politics
  • Business
  • National
  • Culture
  • Lifestyle
  • Sports
  • Write For Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • National
  • Culture
  • Lifestyle
  • Sports
  • Write For Us
No Result
View All Result
Smye Holland Associates
No Result
View All Result
Home News

Spain Stresses Risk Of Sovereign Debt Crisis In Latin America

The Government appeals to the IMF and the G-20 to open multilateral financing lines

admin by admin
January 5, 2021
in News
0
Spain Stresses Risk Of Sovereign Debt Crisis In Latin America
0
SHARES
12
VIEWS
Share on FacebookShare on Twitter

The pandemic has a strong impact on the side there with the collapse of GDP per capita income in Latin America has fallen a decade and extreme poverty is at levels of the nineties no less

Europe was never the best place to feel optimistic about Latin America and Spain may not be either the Executive warns in an internal document of the risk of an unmanageable debt crisis Spanish diplomacy paints a gloomy socioeconomic picture

Given the scarce fiscal and monetary margin in the region Spain is committed to opening multilateral financing lines to avoid greater evils

The IMF the World Bank and ECLAC forecast GDP falls of around 8 this year that bump has resurrected the Latin American curse of the lost decade

By the end of 2020 there will be 214 million poor people in the region more than a third of the population and 83 million people are expected to fall into extreme poverty a statistical artifice that puts the threshold at an income below 19 dollars a day thats a bitter return to the very forgettable 1990s

The migration crisis is unprecedented Inequality reaches dizzying heights Corruption and outbreaks of violence remain the order of the day

And the hyperbole outlined by the socioeconomic data is joined by sociopolitical trends with a malaise that is reflected in levels of dissatisfaction with democracy that have gone from 51 to 71 the worst numbers in a quarter of a century

This lasagna of figures and complexities leaves the region exposed to its old ghosts Spain in that document of just a dozen juicy pages alludes to the risk of a new sovereign debt crisis and a prolonged cycle of austerity policies

The adjustments which have already started in some country may aggravate the social fractures if a multilateral response is not arbitrated which Spain offers to lead

In addition to health challenges countries in the region may have difficulties in obtaining financing There is neither a Federal Reserve nor a European Central.

Bank for them beyond the market their capacity will depend on the answers that international financial institutions can give explained the Secretary of State for Foreign Affairs and Latin America Cristina last Thursday

With the permission of Eduardo Galeano writing about Latin American economic policy requires the style of a love novel or a pirate novel

In Central and South America economic piracy is in dire health debt crises happen every 10 years  roughly speaking  and there always seems to be a lost decade around the corner The metrics of the current hurricane compare beautifully with those of the Great Depression which left an ugly scar in those latitudes or with the formidable debt crisis of the 1980s

But back in 2008 with Lehman Brothers putting the world in a quagmire the global economy was living a love affair with Latin America the region had a very good five years which only played in 2009 but quickly recovered with the invaluable help of the supercycle of raw materials and China

That honeymoon gave way to the inescapable pirate novel the region limped into the pandemic with a peg leg in the form of a fiveyear crisis

The covid also threatens to sever the good leg The health economic and social crises occur in a fragmented and polarized political scenario with low levels of trust in institutions and high levels of public disaffection fragile economies and high levels of inequality poverty and exclusion that can cause social unrest and political crises deep according to the diagnosis of the aforementioned document to which EL PAÍS has had access

The medical picture combines social unrest there have been riots in Chile Colombia Ecuador Nicaragua Venezuela and political volatility in which sharp turns Mexico Argentina and various leaders with authoritarian tendencies are mixed Spain yes applauds the recent episodes in Chile and Bolivia not everything was going to be bad news

The economic flank is a real headache Before the pandemic Argentina and Ecuador were already implementing IMFsponsored adjustment programs In the current situation an important part of the region can be doomed to face unmanageable debt crises according to Foreign Affairs

This would once again highlight the lack of a multilateral mechanism to restructure debts which recognizes both the rights of creditors and the needs of indebted countries and avoids opportunistic funds

Spain with great interests in the area denounces an insufficient multilateral response the debt moratorium agreed at the G20 only covers the 76 poorest countries in the world which leaves out the vast majority of Latin America

The Government will put forward proposals both in the IMF and in the G20 itself to find solutions It seeks to prevent the health crisis from leading to a major debt crisis

Among the recipes that Spain contemplates are an extraordinary issuance of special drawing rights the capital of the IMF a solution complicated by the US blockade or the possibility that the Fund uses in America the margin that it has for Europe if the Old Continent doesnt need it

Also proposed are broad moratoriums and the relaxation of liquidity lines from the IMF and multilateral development banks Spain is not sparing proposals that can raise blisters such as a greater fiscal effort by the elites of each country

That analysis dates from last June The Executive has recently qualified the pessimistic tone of the report the number two of Foreign Affairs Cristina Gallach predicted last week difficulties in several countries to face financing problems although she avoided mentioning the accursed phrase debt crisis

José Antonio Ocampo from Columbia admits that the impact of the pandemic has been very strong but does not share the gloomiest analyzes The restructurings in Argentina and Ecuador worked and there are IMF credit lines in several countries

And most importantly unlike other times the closing of the markets lasted just a couple of months There may be specific problems if the health crisis continues but Latin America is not doing any worse than southern Europe he closes with an irony that works at the same time as an uncomfortable truth

The Foreign Affairs document raises from its inception initiatives and concerted actions in the G20 and other forums with the aim of facilitating access to financing and debt relief in the face of the crisis but it goes much further

Spain intends to strengthen its diplomatic strategy in the region it has two visits planned shortly to Chile and Bolivia and above all it wants to strengthen the role of the EU in Latin America in the face of fierce geopolitical competition from Chinaand the United States

Latin America may be one of the scenarios in which some of the key fractures of the postcovid world will be resolved nationalism or global cooperation open or closed democratic or authoritarian societies and on the role of Spain and the EU in a world of growing geopolitical competition points out the report of the Spanish Executive

To regain influence Spain proposes to improve the treatment of Latin America in the Multiannual Financial Framework the EU budget

Foreign Affairs intends to play a more active role in regional crises particularly in Venezuela and plans to increase resources so that the Spanish cooperation strategy regains credibility and capacity

Spain notes the crisis of regional cooperation initiatives Unasur has dismantled Celac has been paralyzed since 2017 and projects such as the Organization of American States OAS Prosur or the Lima Group have no credibility or autonomy due to their alignment with the United States

The Pacific Alliance has lost its original appeal and in Mercosur there are tensions over the confrontation between Brazil and Argentina although Spain urges the provisional entry into force of the EUMercosur agreement.

admin

admin

Related Posts

Mission In Western Sahara Without Promoting The Self Determination Referendum
Lifestyle

Mission In Western Sahara Without Promoting The Self Determination Referendum

January 13, 2021
Boris Johnson Has Lost The North MN
Lifestyle

Boris Johnson Has Lost The North MN

January 13, 2021
vo
News

Kylie Jenner would have stopped following Rosalia

January 13, 2021
Next Post
NOC Polarized Political Scenario With Low Levels Of Trust in Institutions

NOC Polarized Political Scenario With Low Levels Of Trust in Institutions

Cones and Co-workers: The Weirdest Things You’ve Woken Up With

Cones and Co-workers: The Weirdest Things You've Woken Up With

vo

Kylie Jenner would have stopped following Rosalia

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

  • 21.5M Fans
  • 79 Followers

Recommended

Red Sheets To Add Anti Drone Shields in Leaks

Red Sheets To Add Anti Drone Shields in Leaks

2 months ago
Ábalos Suggests That Users Do Not Pay Tolls

Ábalos Suggests That Users Do Not Pay Tolls

1 month ago
Hong Kong Deals First Blow To The Press Critical Of China

Hong Kong Deals First Blow To The Press Critical Of China

2 months ago
Naturgy Cedes Control Of Its Technological Services

Naturgy Cedes Control Of Its Technological Services

1 month ago

Instagram

    Please install/update and activate JNews Instagram plugin.

Categories

  • Business
  • Culture
  • Lifestyle
  • News
  • Politics
  • Uncategorized
  • World
No Result
View All Result

Highlights

Cones and Co-workers: The Weirdest Things You’ve Woken Up With

NOC Polarized Political Scenario With Low Levels Of Trust in Institutions

Spain Stresses Risk Of Sovereign Debt Crisis In Latin America

Dutch SS Veterans Hold On Disability Pension From Germany

Dutch King Be in Power For The Jews Felt Forgotten

Teleworking Model For You in 2021 of 5G

Trending

Mission In Western Sahara Without Promoting The Self Determination Referendum
Lifestyle

Mission In Western Sahara Without Promoting The Self Determination Referendum

by admin
January 13, 2021
0

The UN Security Council voted this Friday in favor of extending the United Nations Mission for the...

Boris Johnson Has Lost The North MN

Boris Johnson Has Lost The North MN

January 13, 2021
vo

Kylie Jenner would have stopped following Rosalia

January 13, 2021
Cones and Co-workers: The Weirdest Things You’ve Woken Up With

Cones and Co-workers: The Weirdest Things You’ve Woken Up With

January 6, 2021
NOC Polarized Political Scenario With Low Levels Of Trust in Institutions

NOC Polarized Political Scenario With Low Levels Of Trust in Institutions

January 6, 2021

Smye Holland Associates




We bring you the best and latest news from around the world.

LEARN MORE »





Recent News

  • Mission In Western Sahara Without Promoting The Self Determination Referendum January 13, 2021
  • Boris Johnson Has Lost The North MN January 13, 2021
  • Kylie Jenner would have stopped following Rosalia January 13, 2021

Categories

  • Business
  • Culture
  • Lifestyle
  • News
  • Politics
  • Uncategorized
  • World

[mc4wp_form]

© 2018 JNews - City News Magazine WordPress theme. All rights belong to their respective owners.
JNews is a top selling 2018 WordPress News, Blog, Newspaper & Magazine Theme.

No Result
View All Result
  • Politics
  • News
  • Business
  • Culture
  • National
  • Sports
  • Lifestyle
  • Travel
  • Opinion

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.