Martín Guzmán was tasked with renegotiating an IMF loan that Argentina said it could not repay. (file)
Buenos Aires:
Argentina’s economy minister, Martín Guzmán, who led the debt renegotiation talks with the International Monetary Fund, announced his resignation in a statement shared on Twitter on Saturday.
Addressing President Alberto Fernández, Guzmán did not explain why he resigned, but called on the centre-left leader to mend internal divisions so that “the next minister does not face the same difficulties” as he did.
“It will be necessary that you work out an agreement within the ruling coalition,” he said.
His resignation comes two weeks after Vice President Christina Kirchner, a former president who has been a frequent critic of the government, attacked Fernandez’s economic management.
As economy minister, Guzmán, 39, was tasked with renegotiating a $44 billion loan with the IMF, which Argentina insists it cannot afford to repay.
The original loan of $57 billion – the final tranche of which was rejected by Fernandez after succeeding his liberal predecessor Mauricio Macri, who pleaded for the loan – was the largest loan ever issued by the IMF.
Despite Kirchner’s resistance, Guzman managed to agree a deal and save Argentina from default.
But Guzmán often faced hostility from the Peronist Justicist Party, the dominant force in the ruling coalition that counts both Fernández and Kirchner as high-profile members.
Guzmán said that whoever replaces him will need “centralized management of the necessary macroeconomic political tools to bolster progress and meet the challenges ahead.”
Agricultural superpower Argentina may have the third-largest economy in Latin America, but it has been in economic trouble for years, with inflation of more than 60 percent in the past 12 months.
The country was already grappling with rising poverty and a depreciating currency before the coronavirus pandemic escalated cases.
The IMF deal included provisions to control inflation and reduce the budget deficit from three per cent in 2021 to parity by 2025.
Guzmán’s opponents within the ruling coalition lashed out at him over his over-zealousness in tackling the budget deficit and his monetary policy.
He complained several times that these criticisms sent worrying signals to already panicked markets, making his job more difficult.
In a recent report, Eurasia Group’s political risk consulting firm said that internal divisions will not be resolved any time soon.
“The infighting within the Administration will continue to worsen, affecting the ability of the Administration to develop a coherent policy plan,” Eurasia said.
Although he did not specify what his next post would be, Guzmán said he would “continue to work and strive for a fair, free and sovereign homeland.”
Fernandez is yet to comment on the resignation of a close aide.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)