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Buenos Aires — Argentina President Alberto Fernandez appointed economist and government official Silvina Batakiss as the new minister of economy late Sunday after long-time minister Martin Guzman suddenly resigned in the midst of crisis and tension.
Fernandez held an all-day meeting with powerful and divisive Vice President Cristina Fernandez de Kirchner. He left the government.
Presidential spokesman Gabriella Celti has announced that Fernandez has appointed Batakiss for that role. From 2011 to 2015 she was Minister of Economy in the major states of Buenos Aires and headed the Government Secretariat.
Guzman, 39, submitted his resignation late Saturday as tensions within the ruling Peronist coalition over how to deal with the economic crisis exacerbated by Russia's invasion of Ukraine and ultra-high inflation.
A shocking exit has surfaced a deep-seated division of government, and the more radical wings around Fernandez de Kirchner appear to have hit the gentler wings than the economic plan. ..
"We are facing a complex political crisis deepened by the power struggle," said political analyst Rossendo Fraga.
The moderate Guzman, who has served since 2019, was the driving force behind the massive debt restructuring with his creditors. He was also the key to signing a $ 44 billion deal with the International Monetary Fund (IMF) this year to replace the failed 2018 program with global lenders.
According to sources at the presidential residence, the president and vice president, who have not always been in eye contact for the past few months, have had a "friendly" dialogue and agreed on who should do it. It is said that it helped to reach. He leads the Ministry of Economy.
Policy Risk
Working more closely with Fernandez de Kirchner's wings, Batakiss is a tightly controlled foreign exchange market, ongoing debt trading and trade economic policy. Will be the key to forming. Argentina is a major exporter of soybeans, wheat and corn.
Goldman Sachs analyst Albert Ramos said Guzman's resignation was a political blow to Fernandez and was supported by polls prior to next year's elections. He said he was facing a downturn and could jeopardize his relationship with the IMF. ..
"Political weak and unpopular presidential positions will increase the risk of macro-policies turning into more pagan and interventionist," he wrote in a memo.
Guzman was attacked by the ruling coalition's armed forces around Fernandez de Kirchner, who are pushing to increase state spending to support the devastated Argentina.
He balanced the need and pressure to reduce the severe budget deficit that was severed in the midst of rising energy import costs that hurt foreign exchange reserves.
Economist Joseph Stiglitz, leader of Guzman and a close ally, the minister has a strong job to solve the debt crisis left by the previous administration and restore post-pandemic growth. However, the division of the government caused the situation and is unacceptable.
"His deep principles make it impossible for him to take office without a government commitment to a unified, integrated and coordinated approach to the enormous challenges facing the economy. I did, "said Stiglitz.
(Report by Jorge Otaola, Additional Report by Hugh Bronstein, Edited by DianeCraft and Bradley Perrett)