Argentina's Macri Names New Finance Minister and Central-Bank Chief -- Update
November 25 2015 - 05:17PM
Dow Jones News
By Taos Turner
BUENOS AIRES--President-elect Mauricio Macri on Wednesday
selected a team of veteran policy experts to overhaul Argentina's
economy, a day after he said departing President Cristina Kirchner
declined to help with a cabinet transition.
Mr. Macri tapped former central-bank President Alfonso Prat-Gay
as his finance minister. Mr. Prat-Gay, who once ran the currency
research unit at J.P. Morgan Chase & Co. in London, said
earlier Wednesday that the new administration will move "as soon as
possible" to unravel a complex system of currency controls.
Mr. Macri's team "represents a new period for Argentina and its
government," future cabinet chief Marcos Peña said at a news
conference.
Mr. Prat-Gay, 50 years old, will steer a stagnant economy with
depleted foreign-currency reserves and a shortage of dollars.
Earlier this week, American Airlines Group Inc. stopped accepting
Argentine pesos for tickets, as currency controls were affecting
its ability to repatriate earnings.
But dismantling currency controls could stoke inflation--already
running at around 25% annually--and stymie economic growth. "This
is a tall task, " Mr. Prat-Gay said in a radio interview. "But
we're convinced that we've got the support of the people."
As Mr. Macri prepares for the transition, tensions have been
mounting with the Kirchner administration. On Wednesday, Mrs.
Kirchner said the government shouldn't be run like a company, in a
veiled reference to Mr. Macri's professional background as a
businessman.
Her comments come after Mr. Macri said that a 20-minute meeting
with Mrs. Kirchner late Tuesday "was not worth it" and that she
doesn't plan to help him with the transition until Dec. 9. That
could give his team just hours to see any of the government's
economic data before taking office Dec. 10.
Mr. Prat-Gay said Argentina's economic data is so unreliable
that some decisions may have to wait until after Mr. Macri becomes
president.
Mr. Macri plans to replace central-bank President Alejandro
Vanoli with Federico Sturzenegger, a U.S.-trained economist and
former president of Banco Ciudad, this capital city's state-run
bank.
Currently a member of Congress, Mr. Sturzenegger was also chief
economist at YPF, Argentina's state-run oil and gas company.
Mr. Macri has "prioritized technical capacity over political
aptitude," said Eduardo Levy Yeyati, head of Elypsis, an economic
research firm. "Considering the challenges that he faces, focusing
on the suitability and the technical capacity of his cabinet seems
to be the right decision."
Mr. Prat-Gay has said the central bank hasn't been independent
in recent years and it is unclear how many foreign-currency
reserves the bank has on hand. "Vanoli is a political activist.
There are many reasons for him to resign," he added.
Mr. Vanoli, who is under criminal investigation for the central
bank's role in selling dollar derivatives at below-market rates,
has defended his actions and accused Mr. Macri's team of planning
an abrupt currency devaluation.
Though Mr. Prat-Gay will lead the effort to end the currency
controls, he won't have an all-powerful role over the economy as
have previous Argentine economy minsters. Mr. Macri has said his
economic team will be composed of about half a dozen ministers.
Mr. Macri tapped Susana Malcorra as foreign minister. She is a
former telecommunications-industry executive and is currently the
cabinet chief to United Nations General Secretary Ban Ki-Moon.
Santiago Pérez contributed to this article.
Write to Taos Turner at taos.turner@wsj.com
(END) Dow Jones Newswires
November 25, 2015 17:02 ET (22:02 GMT)
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