Economy Minister Guzmán resigns as Argentina government crisis

Argentine Economy Minister Martin Guzmán, who led debt talks with the International Monetary Fund, resigned on Saturday.

Argentine Economy Minister Martin Guzmán (Photo: Reuters)

Argentina’s economy minister, Martin Guzmán, resigned on Saturday for a government beset by a growing economic crisis.

Guzmán, who led Argentina’s debt restructuring deal with the International Monetary Fund and creditors, posted a letter on his Twitter account announcing his decision.

“I write to you to present my resignation as Minister of Economy,” Guzmán said in a letter addressed to President Alberto Fernández.

The government is facing its lowest approval rating since taking office in 2019. Inflation is running above 60% and peso currency is under increasing pressure. Sovereign bonds have fallen.

People are skeptical about the economy and infiltrating the governing coalition between moderates like Guzmán and a more extremist wing.

Guzmán said that “there must be a political settlement within the governing coalition” to choose his successor.

Miguel Kiguel, former secretary of finance in Argentina, told Reuters that whoever takes office will have a tough time, noting that inflation could reach as high as 80% this year and the gap between official and parallel currency exchange rates is about 100%. % difference.

“We don’t know who’s coming, but it will be very hot potatoes,” Kiguel said. “Whoever comes will have a very complicated time.”