Wall Street investors have asked Batakis about the real power he has to make changes

Economy Minister Silvina Batakis held a meeting this Tuesday in Washington with investors with interests in Argentina who persistently investigated credibility and political support that the new official must put in place the necessary measures to get out of the crisis.

Batakis had a two-hour business lunch at the Argentine Embassy headquarters with about 20 investors and economic analysts among which were directors of Santander Investments, Stone Harbor, Goldentree, Bracebridge, Barclay’s Capital and Banza, among others.

The minister had already met with the managing director of the International Monetary Fund, Kristalina Georgieva, with whom he had discussed the implementation of the program signed by his predecessor Martín Guzmán, whose objectives now appear difficult to achieve. Also with Treasury Advisor David Lipton and had obtained a $ 200 million loan from the World Bank.

It was his first contact with investors. As he said Clarione among the investors present at Batakis’ meeting with business leaders and Wall Street experts, the minister made a brief introduction in which she presented herself as a “technocrat”. She said that she had taken the place of doing a job and that she had been “empowered to do so”. Although he admitted that his superiors may change their mind.

The questions then ignited the power the official really has to shape a plan. “He said yes, the agreement was that she would be the minister and so on is authorized by the leaders of the coalition “, the source said.

Indeed, Ambassador Jorge Argüello spoke at the meeting of “Importance of political balance reached within the coalition around the designation of Batakis ”at the head of the Palacio de Hacienda, after the resignation of Martín Guzmán.

“His appointment and the steps he has taken in these three weeks they enjoy the support of the three pillars of the coalition. This is not a sufficient condition, but it is a necessary condition to restore a certain normality to the country’s economy ”, said the ambassador, who took on a leading role that he did not have with Guzmán.

Another group of questions concerned tax adjustment and she said she had committed to do so. But also There was a lot of interest in knowing how the flight of the pesos, the rise in the dollar and, above all, inflation would be fought.

Regarding the price stampede, Batakis said he understood that the problem is very complicated and that many measures must be taken to combat it, and that it is not just about controlling prices. “You have to attack many fronts, especially the fiscal one,” he said and assured that he would work so that there were more tax savings, something the Fund requires.

“For me it was very good”, said to Clarin Javier Timerman, director of AdCap, one of the participants in the meeting. “He was pretty moderate. They asked him why ministers in the United States say one thing and then another happens. He said that he has always had a behavior in the Province of Buenos Aires, which has always dealt with the tax issue, with the care of creditors ”.

The question of the credibility of Argentina and the officials of our country is recurring on Wall Street. Investors are suspicious of everyone’s Home Front, the influence of Vice President Cristina Kirchner and the margin for action that the minister may have.

Carlos Abadi, said the executive director of Decision Boundaries Clarione who does not believe that the minister’s visit will serve to improve the country’s credibility on the markets. “If I were the president and had an interest in improving trust, I would hide Batakis, I would not put him on display. Because it’s a piece of paper He is not a minister at the height of this crisis. The situation is very serious and the country needs the economic guidance of someone who has a vision of a viable growth path for Argentina, on which to build a financial program. Not only does Batakis lack economic vision, but also the ability to formulate a coherent financial program ”.

For Diego Ferro, president of M2M Capital, “these meetings are increasingly formal. There is a lot of skepticism about Argentina, nothing you can say in a match makes much difference. Perhaps it helped the minister to meet some US investors. I had met her before. At this point the problem is obviously political, beyond what Batakis wants to do. Reality is catching on fast. “

After noon, Batakis went to a meeting at the US Chamber of Commerce and will later hold bilateral meetings with representatives from Chevron, General Motors, Amazon and Google. After these meetings, the minister will return to the country.