Argentina and Brazil have announced they are continuing to work on a new method of trade settlement which will allow them to avoid having to use the US dollar in bilateral trade deals.

As a key element of a new major debt deal with its international creditors, economically-stricken Argentina is looking to rebuild its reserves to cover trade costs and the repayment of future debt.

It had been expected that this week Brazilian President Luiz Inacio Lula da Silva and Argentinian President Alberto Fernandez would reveal the new mechanism they were developing. Reportedly it would allow Argentinian firms to continue trading with Brazil while not draining dollars from the country’s reserves. However instead, when interviewed by the press following a meeting, the two leaders said the details of the plan were still being worked out.

Standing with Fernandez, Lula said, “The meeting was long, difficult and we will carry out many more meetings. I made a commitment to my friend Alberto Fernandez that I will do every and any sacrifice so we can help Argentina in this difficult moment.”

Reportedly the deal being worked out will involve a line of credit which will finance Brazilian businesses which export to Argentina, which will be aimed at avoiding the use of US dollars in trade settlement.

Brazilian Finance Minister Fernando Haddad said the two nations are studying possible guarantees before the Brazilian government will provide the financing.

Fernandez said, “They’ve made the decision to help make sure that Brazilian companies continue exporting to Argentina and they had asked us to do some homework, which we have already done, and have to do with the necessary guarantees.” Next week the Economy Ministry will send officials to meet with the Brazilian government to work out the details, he added.

Argentina had worked out a deal with China earlier this year which would see companies in Argentina pay for Chinese imports in yuan.

At this moment, the government of Argentina owes $44 billion to the International Monetary Fund. Presently the Argentinian government is renegotiating its previously signed agreement with the fund, to restructure some of its loans.