For the Financial Times “Batakis’ promises fail to calm investors”

The Financial Times usually writes about Argentina, that looking at what is happening in this country has a lot to do with the continuing turmoil the country is experiencing and which usually surprises foreigners. The column signed this time by Lucinda Elliot speaks of the intentions of Silvina Batakis, the new Minister of Economy arrived a week ago to replace the resigning Martín Guzmán, the minister who has accompanied Alberto Fernández since the beginning of his mandate.

The British newspaper underlines from the title what the official has promised since he took charge of the Palacio de Hacienda: “Batakis spent his first week as Argentine finance minister pledging to honor IMF commitments and restore “order and balance”. However, the FT warns along the same lines that “Those guarantees have failed to calm investors who fear another sovereign debt default. between rampant inflation and poor public finances.

“The appointment of Batakis, 53, a relatively unknown career official, triggered a week of market turmoil“, he warns. And he adds: “As investors braced for potential political shifts that would undermine efforts to stabilize the Argentine economy and keep the IMF’s already fragile $ 44 billion deal on track. “

In the report of the days following the arrival of the new minister, the FT emphasizes that “Batakis took advantage of his first official press conference in Buenos Aires on Monday to deliver a reassuring message” saying that Argentina “You will not spend more than what you have”, And who as minister was committed to the IMF program agreed earlier this year.

“So far, Washington officials have publicly welcomed the new appointment. Kristalina Georgieva, chief executive of the IMF, Batakis said he understood “the purpose of fiscal discipline” and described having a “very good” first call. with the minister last week. also georgieva highlighted the “very complex” economic prospects that the country must face “comments the author of the publication.

However, after describing the local scenario, the FT warns that “with the Argentine economy in difficulty, the task (of Batakis) will be formidable”. “Inflation is projected to exceed 75% this year, according to a Central Bank poll. Poverty is high and rising. Savers have rushed to convert their holdings into more stable currencies for fear that the economy worse much before getting worse, better, “he adds.

Another point referenced by the British publication explaining the local fragility is that “purchases of cryptocurrencies have also skyrocketed. in a sign that these digital assets are increasingly seen as a store of value in the midst of economic turmoil “.

Asked by the FT, Diana Mondino, economist and professor at the CEMA University of Buenos Aires, said that the economic crisis in Argentina it had become “incredibly difficult” to manage. “The government has entered a tight financial crisis. . . all they do is increase the amount of debt the country has, ”she said.

In this sense, “Batakis must not only deal with the economy, but also with the political tense of the country”, says the author of the FT. “An open rift between President Alberto Fernández and the most radical bloc of the left-wing Peronist coalition led by Cristina Fernández de Kirchner, the powerful vice president of Argentina, is one more obstacle “addition.

Finally, the publication ensures this “It is not yet clear what role Batakis will play in addressing tensions over how to reconcile the economy”

YN