Argentina’s Economy Minister Silvina Batakis said she sees strong political support from “all sectors” of the ruling coalition, which will allow her to implement the policies needed to stabilize the economy.
The minister said she had the support needed in Buenos Aires to drive growth, after two days of meetings with private and institutional investors in Washington, D.C. Batakis has been in office since July 4 following the resignation of her predecessor Martín Guzmán lack of support within the government.
“Within the coalition, there is a balance that allows us to implement the necessary measures to calm the economy,” Batakis told reporters at the Argentine Embassy in Washington. “In this sense, there is strong support from all sectors of our political space.”
This is the first time Batakis has commented on his political support. Guzmán has fallen out of favor with Vice President Cristina Fernández de Kirchner and her far-left wing within the ruling coalition, hampering her ability to move forward with unpopular spending cuts needed to comply with a $44 billion program with the International Monetary Fund. Kirchner, who served as president from 2007 to 2015, did not comment on Batakis or the difficult state of the economy in recent weeks.
To calm down
Since Batakis’ appointment, the country’s parallel peso rate – an indicator of confidence given that the official exchange rate is managed by controls – has weakened by 27%. Batakis said on Tuesday the peso was just beginning to stabilize after weeks of volatility, blaming the currency’s recent plunge on worries following the 30 hours without an economy minister between Guzmán’s resignation and his appointment to the post. .
She added that the markets are calming “as they get to know me”.
Javier Timerman, an associate at Adcap Securities who participated in a meeting between Batakis and investors held earlier on Tuesday, said in a statement that the minister noted her aim to rebuild the country’s relationship with investors. and that she was “open to listening to the opinion of fund managers.
Argentina’s benchmark bonds due in 2030 edged up 0.3 cents to 19.4 cents to the dollar after Tuesday’s meetings.
Batakis’ comments capped her first trip as economics chief, during which she met with staff from the IMF, World Bank and US Treasury Department.
“We discussed how we are going to meet the targets and when the reviews will be done,” she told reporters, referring to discussions with IMF officials. “It was very important to establish a schedule of meetings to continue working.”
by Bloomberg / Maria Paula Mijares Torres & Patrick Gillespie