Argentina’s Macri Names New Finance Minister and Central-Bank Chief

Shutterstock photo

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 Peñ a
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 Pé rez contributed to this article.

Write to Taos Turner at taos.turner@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires


  (END) Dow Jones Newswires
  11-25-151625ET
  Copyright (c) 2015 Dow Jones  Company, Inc.






Leave a Reply