Argentine Economy Minister Martin Guzman Architect of modern specialty debt Deal with The International Monetary Fund unexpectedly submitted its resignation on Saturday, in a new blow to government of President Alberto Fernandez while the country struggles with economic problems.
Guzman came up down after a week in What is the currency of Argentina? hit The lowest level ever against United State dollar amid hypertrophy and truck drivers Organizing protests over shortage of diesel.
Guzman, minister Since late 2019 and a close ally of President Fernandez, posted e-mail on Twitter announces his decision, adding that he has maintained “trust in see me of The path Argentina should follow. “
Center-left The Biruni president is facing His lowest approval rating since he took office in 2019 with cracks in His coalition, inflation exceeded 60%, the peso currency under increasing pressure, and sovereign bonds at record lowest levels.
I am writing to tender my resignation in my capacity economy minister said Guzman in A seven-page letter addressed to Fernandez highlights the interior battles within the administration.
Clarify tensions, Guzman announced His resignation while Vice President Cristina Fernandez was giving a high-profile speech in which criticized the government’s economic policies. vice president, who He has nothing to do with Argentina’s leader, is a former The president herself and the ruler coalition They were divided among their allies.
The resignation leaves the ministry without leadership just Guzmán was expected to travel to Europe to negotiate $2 billion debt Deal with Paris Club of Sovereign lenders. He. She also Deals a blow to weaken Fernandez power Base.
“It’s history of a death I prophesied,” said Marielle Fornoni, director of Management Consulting and Fit, adding that a painful loss in midterm elections last year for The government He has offended President Fernandez very badly.
“Now he lost another piece of for him boardperhaps most importantly, and increasingly alone.” added.
investors, already Tense over the country’s economic outlook, bonds pushed down about 20 cents on The dollar in recent weeks.
everybody eyes Now it will be on alternative of Guzman, whose resignation came at the end of week of Economic turmoil.
With the slide of the Argentine peso against The dollarThe government on Tuesday made it is difficult to acquire dollars to pay for Imports according to the arrival of the local currency new lows in parallel market Used by citizens and businesses to bypass official channels.
Argentina has suffered for years of shortage of dollars, which stems in part from mistrust of Argentinians in their own currency amid rising inflation. Inflation is on an annual basis rate of more More than 60% economists predict rate to continue to deteriorate.
stop working by truck drivers disrupted economic activity, including delivery to ports of grain, which is one of Argentina main imports.
on Wednesday, and government He said he was trying to increase availability of Diesel allow more Biofuels to be mixed with fuel and also suspension of import tax on diesel.
Argentina produces diesel but does not produce in Sufficient quantities for his needs and dependence on imports, with world the prices rising Because of Disorders caused by the epidemic and Russian invasion of Ukraine.
Analysts say one of the reasons for The shortcoming is that it is not profitable for Oil companies to import diesel because government It prevents them from imposing costs on them buy on The international market.
In his resignation letter, Guzman suggested at least that part of for him reason for His leaving was because he lacked political support within government.
“From experience He wrote, “I have lived, I think it will be essential work on Political agreement within the government coalition So that the person who Will replace me central control of Macroeconomic Necessary policy Tools … to face The challenges Before.”
President office He said it hasn’t happened yet know when replacing for Guzman will be announced. Fernandez summoned members of his government and his allies to an emergency meeting, one government The source said.
“The president deeply regrets decision But he respects her. He analyzes it next decisions another said government source with Knowledge of Subject.
two economy Ministry officials, who spoke on condition of anonymity, said Guzmán’s position had become untenable, especially abroad support for his economic agenda.
“He couldn’t go on without tools And the with (Vice President) Cristina (Fernandez de Kirchner) against for him,” one of the two people He said. “When things are over” possibleit did of Responsibility to leave.
Miguel Kegel, former secretary of Finance in Argentina told Reuters that whoever takes over He’s going to have a hard time, indicating that inflation can happen hit 80% this year A gap of Nearly 100% between official and parallel exchange rates.
“We don’t know whoWho’s coming, but these are going to be very hot potatoes,’ said Kegel. Whoever comes will have a very complicated time.”
Guzman was in for him post Ago start of Fernandez government on Dec 10, 2019 And It Was Long one of The most prominent personalities within the Council of Ministers.
early on in Management, he was seen as a strong ally of the chief but also someone who could help The bridge of divisions in Judgment that is often divided coalition. However, he has clashed in recent months with Some officials loyal to the vice president and his influence within government It appears to be diminishing.
Guzman first challenge in job and successHe was negotiating a restructuring of Argentina debt And avoid default.
Later reached an agreement on debt satisfaction with IMF, but some of The more left-Clean items of The government She said it included a lot of concessions that would hinder the Argentine economy growth.
Allied legislators with cum voice against the agreement with International Monetary Fund in Congress and Guzman’s resignation raise doubts about whether the country will be able to meet terms of Deal.
In his resignation letter, Guzman said that his main goal When taking over the mission was “calm down economy” And the in To do this it was necessaryresolve The problems of unsustainable external debt that overwhelm the state, as well as everyone of Argentina. “
Argentine Economy Minister Martin Guzman Architect of modern specialty debt Deal with The International Monetary Fund unexpectedly submitted its resignation on Saturday, in a new blow to government of President Alberto Fernandez while the country struggles with economic problems.
Guzman came up down after a week in What is the currency of Argentina? hit The lowest level ever against United State dollar amid hypertrophy and truck drivers Organizing protests over shortage of diesel.
Guzman, minister Since late 2019 and a close ally of President Fernandez, posted e-mail on Twitter announces his decision, adding that he has maintained “trust in see me of The path Argentina should follow. “
Center-left The Biruni president is facing His lowest approval rating since he took office in 2019 with cracks in His coalition, inflation exceeded 60%, the peso currency under increasing pressure, and sovereign bonds at record lowest levels.
I am writing to tender my resignation in my capacity economy minister said Guzman in A seven-page letter addressed to Fernandez highlights the interior battles within the administration.
Clarify tensions, Guzman announced His resignation while Vice President Cristina Fernandez was giving a high-profile speech in which criticized the government’s economic policies. vice president, who He has nothing to do with Argentina’s leader, is a former The president herself and the ruler coalition They were divided among their allies.
The resignation leaves the ministry without leadership just Guzmán was expected to travel to Europe to negotiate $2 billion debt Deal with Paris Club of Sovereign lenders. He. She also Deals a blow to weaken Fernandez power Base.
“It’s history of a death I prophesied,” said Marielle Fornoni, director of Management Consulting and Fit, adding that a painful loss in midterm elections last year for The government He has offended President Fernandez very badly.
“Now he lost another piece of for him boardperhaps most importantly, and increasingly alone.” added.
investors, already Tense over the country’s economic outlook, bonds pushed down about 20 cents on The dollar in recent weeks.
everybody eyes Now it will be on alternative of Guzman, whose resignation came at the end of week of Economic turmoil.
With the slide of the Argentine peso against The dollarThe government on Tuesday made it is difficult to acquire dollars to pay for Imports according to the arrival of the local currency new lows in parallel market Used by citizens and businesses to bypass official channels.
Argentina has suffered for years of shortage of dollars, which stems in part from mistrust of Argentinians in their own currency amid rising inflation. Inflation is on an annual basis rate of more More than 60% economists predict rate to continue to deteriorate.
stop working by truck drivers disrupted economic activity, including delivery to ports of grain, which is one of Argentina main imports.
on Wednesday, and government He said he was trying to increase availability of Diesel allow more Biofuels to be mixed with fuel and also suspension of import tax on diesel.
Argentina produces diesel but does not produce in Sufficient quantities for his needs and dependence on imports, with world the prices rising Because of Disorders caused by the epidemic and Russian invasion of Ukraine.
Analysts say one of the reasons for The shortcoming is that it is not profitable for Oil companies to import diesel because government It prevents them from imposing costs on them buy on The international market.
In his resignation letter, Guzman suggested at least that part of for him reason for His leaving was because he lacked political support within government.
“From experience He wrote, “I have lived, I think it will be essential work on Political agreement within the government coalition So that the person who Will replace me central control of Macroeconomic Necessary policy Tools … to face The challenges Before.”
President office He said it hasn’t happened yet know when replacing for Guzman will be announced. Fernandez summoned members of his government and his allies to an emergency meeting, one government The source said.
“The president deeply regrets decision But he respects her. He analyzes it next decisions another said government source with Knowledge of Subject.
two economy Ministry officials, who spoke on condition of anonymity, said Guzmán’s position had become untenable, especially abroad support for his economic agenda.
“He couldn’t go on without tools And the with (Vice President) Cristina (Fernandez de Kirchner) against for him,” one of the two people He said. “When things are over” possibleit did of Responsibility to leave.
Miguel Kegel, former secretary of Finance in Argentina told Reuters that whoever takes over He’s going to have a hard time, indicating that inflation can happen hit 80% this year A gap of Nearly 100% between official and parallel exchange rates.
“We don’t know whoWho’s coming, but these are going to be very hot potatoes,’ said Kegel. Whoever comes will have a very complicated time.”
Guzman was in for him post Ago start of Fernandez government on Dec 10, 2019 And It Was Long one of The most prominent personalities within the Council of Ministers.
early on in Management, he was seen as a strong ally of the chief but also someone who could help The bridge of divisions in Judgment that is often divided coalition. However, he has clashed in recent months with Some officials loyal to the vice president and his influence within government It appears to be diminishing.
Guzman first challenge in job and successHe was negotiating a restructuring of Argentina debt And avoid default.
Later reached an agreement on debt satisfaction with IMF, but some of The more left-Clean items of The government She said it included a lot of concessions that would hinder the Argentine economy growth.
Allied legislators with cum voice against the agreement with International Monetary Fund in Congress and Guzman’s resignation raise doubts about whether the country will be able to meet terms of Deal.
In his resignation letter, Guzman said that his main goal When taking over the mission was “calm down economy” And the in To do this it was necessaryresolve The problems of unsustainable external debt that overwhelm the state, as well as everyone of Argentina. “