Argentina's Macri Names New Finance Minister and Central-Bank Chief
November 25 2015 - 4:34PM
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 Mr. Macri 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," cabinet chief Marcos Peña said at a news
conference.
Mr. Prat-Gay, 50 years old, will steer a stagnant economy amid
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 earlier
Wednesday. "But we're convinced that we've got the support of the
people."
Mr. Macri also plans to replace central-bank President Alejandro
Vanoli and appoint Federico Sturzenegger, a U.S.-trained economist
and former president of Banco Ciudad, this capital city's state-run
bank and one of Argentina's leading mortgage lenders.
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 said Argentina's economic data is so unreliable
that some decisions may have to wait until after Mr. Macri takes
office on Dec. 10.
His comments come after Mr. Macri met late Tuesday with
departing President Kirchner. He said Mrs. Kirchner doesn't plan to
help him with the transition until Dec. 9. That gives Mr. Macri's
team virtually just 24 hours to see the government's economic data
before taking office Dec. 10.
The meeting "was not worth it," Mr. Macri said after leaving the
presidential residence on the outskirts of this capital.
Santiago Pérez contributed to this article.
Write to Taos Turner at taos.turner@wsj.com
(END) Dow Jones Newswires
November 25, 2015 16:19 ET (21:19 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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