CONTACT INFORMATION POLITICAL & REGULATORY RISKS
[email protected] Juan Cruz Díaz
[email protected] www.cefeidas.com Heidi Lough +54 (11) 5238 0991 (ARG)
[email protected] +1 (646) 233 3204 (USA) REPORT Madeleine Elder Torre Bellini
[email protected] Esmeralda 950 Megan Cook Ciudad Autónoma de Buenos Aires
[email protected] (C1007ABL) República Argentina Rebecca O’Connor
[email protected] Political Climate Report - ARGENTINA June 1, 2018 POLITICAL CLIMATE IN THIS ISSUE Page 2 The Macri administration has had a busy month working to respond to Dujovne appointed economic the exchange rate volatility, the first major stress test of President coordinator Mauricio Macri’s ambitious economic reform program since he took Page 3 office in December 2015. The administration made use of many of the Macri vetoes law to halt tarifazos tools in its arsenal in order to restore market confidence, namely starting negotiations with the International Monetary Fund (IMF) to Page 4 open a USD 20-30 billion credit line and reorganizing its economic Politics vs. governability team. Keeping the confidence of the general public will prove more G20 watch: Foreign difficult to navigate, given the Argentine population’s deep-seated ministers in Buenos Aires mistrust of the IMF and sensitivity to the peso-dollar exchange rate. Page 5 The administration must also carefully navigate its relationship with Union opposition mounts the opposition, whose support it will need to advance the remainder of OECD meetings in Paris its legislative agenda, and unions, whose objections to rate hikes and IMF negotiations heighten the risk of social conflict. Page 6 Legislative updates Responding to the exchange rate volatility The Macri administration has spent a considerable amount of political capital responding to the recent exchange rate volatility in order to restore market confidence.