China suspends an agreement providing $6.5 billion in financing to Argentina

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Sputnik Brazil – China suspended US$6.5 billion (R$31.6 billion) in financing from a foreign exchange swap line to Argentina, as part of an agreement between then-Argentine President Alberto Fernández and his Chinese counterpart, Xi Jinping, in October 2023, according to the North American Agency for Reducing Emissions from Deforestation. And its deterioration. Intelligence, citing Argentine government sources.

Beijing decision a statement According to the agency, Tuesday (19) coincides with the beginning of Javier Miley’s term as head of the South American country, who has said since his campaign as a presidential candidate that he will sever ties with communist countries, including China.

The money was used to repay part of the debt – US$2.6 billion (about R$13 billion) – out of a total US$44 billion (about R$220 billion) to the IMF.

Last week, Miley recanted his anti-communist convictions and sent a letter to Xi Jinping, requesting a renewal of the currency swap with Beijing. The first contact with Beijing was between Argentine Chancellor Diana Mondino and Chinese Envoy Wu Weihua on the occasion of Miley’s inauguration, which took place on December 10. In November, Miley thanked Xi Jinping for his message congratulating him on his win.

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Wear it with squid – Miley also needed to redeem himself after the offensive speeches he made to Brazilian President Luiz Inacio Lula da Silva during his election campaign.

“Corrupt” and “communist” were the epithets attributed by the Argentine president-elect to the Brazilian president, who declared that Buenos Aires would not deal with countries he described as communist, which would include Brazil.

Days later, his position changed – he himself stated that he would invite Lula to the inauguration – and sent Chancellor Diana Mondino to Brasilia to invite Lula to the inauguration. In response, the Brazilian government sent Counselor Mauro Vieira to represent the president.