Martin Guzman, Argentina’s Economy Minister, has resigned amid the country’s ongoing economic crisis.
Since late 2019, Mr Guzman has been in office and led negotiations with IMF over restructuring Argentina’s debt.
He demanded that the governing coalition reach a political agreement to select his successor.
Argentina is facing 60% inflation, a weak currency and rising global food and energy prices.
After a week of economic turmoil, Mr Guzman resigned. The Argentine peso was sliding against the US dollar.
His departure raises many questions about Argentina’s economic future.
In a letter addressed to President Alberto Fernandez by Mr Guzman, Mr Guzman suggested internal divisions within government.
It is not secret that President Fernandez and Cristina Fernandez de Kirchner are at odds over how to deal with the country’s economic problems.
Actually, Guzman announced his resignation as Ms Fernandez was giving one of a series high-profile speeches criticizing her government’s economic policies.
Ms Fernandez was president herself from 2007 to 2015. She is critical of the government’s inability to reduce the financial burden on ordinary Argentines.
She and her supporters viewed Mr Guzman’s efforts to reduce the deficit and tighten monetary policies as excessive.
If Ms Fernandez wins, the next finance minister would relax on fiscal rigour while increasing the state’s involvement in the economy.
This could prove to be a difficult pill for the IMF, as some financial analysts have already criticised the Fund for failing to set tough enough conditions in its latest $44bn debt agreement with Argentina.
