4th July, 2022
Argentine President Alberto Fernandez named economist and government official Silvina Batakis as the new economy minister late on Sunday after the abrupt resignation of Martin Guzman.
Fernandez held meetings all day, including with his powerful and divisive vice president, Cristina Fernandez de Kirchner, as he raced to find a new economy chief after the shock exit of Guzman, a key ally, shook his centre-left government.
Presidential spokesman Gabriela Cerruti announced that Fernandez had appointed Batakis to the role.
She had been economy minister for the key province of Buenos Aires from 2011 to 2015 and had been leading a government secretariat.
Guzman, 39, submitted his resignation late on Saturday amid rising tensions within the ruling Peronist coalition over how to handle economic crises that have been exacerbated by Russia’s invasion of Ukraine and sky-high inflation. read more
The shock exit has brought deep-seated splits in the government to the surface, with a more militant wing around Fernandez de Kirchner appearing to land a blow on the more moderate wing over economic plans.
“We are facing a complex political crisis, deepened by the fight for power,” said Rosendo Fraga, a political analyst.
Guzman, a moderate had who served since 2019, was the driving force behind major debt restructurings with creditors. He was also key to sealing a $44 billion deal with the International Monetary Fund (IMF) this year to replace a failed 2018 program with the global lender.
A source at the presidential palace said the President and Vice President, who have not always seen eye-to-eye in recent months, had held a “friendly” dialogue, helping them come to an agreement over who should lead the economy ministry.
Batakis, who is more closely allied with Fernandez de Kirchner’s wing, will be key in shaping economic policy over a tightly controlled foreign exchange market, ongoing debt deals and trade.
Argentina is a major exporter of soy, wheat and corn.