MercoPress. South Atlantic News Agency

Massa holds online meeting with Egypt's finance minister

Massa (L) and Maait also stressed the importance of not resorting to “generic recipes” that do not distinguish the particular realities of each country

Argentina's Economy Minister Sergio Massa held a working online meeting Thursday with his Egyptian counterpart Mohamed Maait to coordinate policies in multilateral spaces aimed at promoting the inclusive development of middle-income countries, taking into account the challenges posed by the new global financial architecture, it was reported in Buenos Aires. The two countries' relationship with the International Monetary Fund (IMF) was also discussed.

Both officials also reviewed the BRICS bloc and its development bank, in addition to financial cooperation to promote sustainable debt processes, the use of alternative currencies to encourage trade and investments, as well as the development of instruments to strengthen the bilateral economic link.

Regarding the international financial system, both ministers stressed the need to promote creative and intelligent solutions to face the economic challenges of middle-income nations, ensuring inclusive and sustainable development.

Egypt and Argentina are in talks with the International Monetary Fund to consolidate programs that guarantee the path of macroeconomic stability, without neglecting the promotion of local development and the well-being of citizens.

Both ministers underlined the importance of strengthening bilateral cooperation as well as that with countries in a similar situation to protect themselves from financial instability. They also agreed on the need for international credit organizations to have a specific policy for middle-income countries, which have been left behind in terms of distribution.

Last month, Egyptian President Abdelfatah al Sisi said his country will not depreciate its currency further against the dollar “if it affects the citizen” and “national security”, despite the agreement signed with the International Monetary Fund (IMF).

Egypt has been going through a serious economic crisis for years, which was aggravated by the outbreak of the Covid-19 pandemic, and even more so by the war in Ukraine, which has caused the prices of foodstuffs to soar worldwide.

In this context, Egypt requested and obtained a new IMF aid package worth US$3 billion, in addition to another multi-billion dollar loan granted in 2016. Among other conditions, the IMF demanded the liberalization of the exchange rate and the privatization of some public enterprises.

Massa and Maait also highlighted the actions undertaken in recent months by both countries aimed at betting on multilateralism as a vehicle to provide intelligent solutions to the challenges faced by middle-income economies.

Argentina and Egypt have both applied to join the BRICS bloc, as well as to its New Development Bank (NDB), of which Egypt has become its most recent member and Argentina is expected to follow suit in the coming months.

Both ministers also stressed the importance of not resorting to “generic recipes” that do not distinguish the particular realities of each country, as well as the relevance of implementing policies that allow the fulfillment of international commitments, without neglecting sustainable development and the most vulnerable sectors.

Egypt is the 15th destination of Argentina's exports, chiefly of raw materials such as corn, flour, and oil, with a potential to expand into energy, biotechnology, and agribusiness. Argentina and Egypt established bilateral relations in June 1947.