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Bloomberg: Eric Farnsworth, "This [Amazon] story…goes beyond the forest fires"

Tuesday, August 27, 2019

Eric Farnsworth, vice president of AS/COA, spoke to Shery Ahn on Bloomberg's Balance of Power about the current events in Brazil, Argentina, and Venezuela. Farnsworth first addressed the fires in the Amazon rainforest and the actions being taken by Brazilian president Jair Bolsonaro to deal with the situation.

"Even before he was elected, President Bolsonaro suggested that he was going to open up more development in the a way to build Brazilian economy," he said.

When asked if international monetary aid would help combat the fires in the Amazon rainforest, Farnsworth replied that it would take a lot more than $100 million to bring them under control.

Shifting the focus over to Argentina, Ahn asked Farnsworth if he was experiencing déjà vu after seeing International Monetary Fund (IMF) officials in Buenos Aires, Argentina. Farnsworth replied he and others "hoped we wouldn't have to see [this] ever again in any emerging market," but that the primary elections earlier in the month were a bracing effect on investors. He touched on what this cound potentially indicate for the October presidential election. 

"Based on the anticipated results, you’re going to have some changes, perhaps and that’s going to definitely affect the interests of the economic community," Farnsworth said.

Farnsworth noted that if there is a change in government, there would probably be a different Argentine position in Venezuela. He said there is a "stasis" on Venezuela after the uprising at the end of April/early May, citing discussions in Barbados between the opposition and the interim government of Juan Guaidó, as well as the Maduro regime.

"They're looking for people to say, 'Well we don't want to support Mr. Maduro anymore, but our own equities will be taken care of. We're willing to work for transition.'"