CONTACT INFORMATION POLITICAL & REGULATORY RISKS
[email protected] Juan Cruz Díaz
[email protected] www.cefeidas.com Madeleine Elder +54 (11) 5238 0991 (ARG)
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[email protected] (C1007ABL) República Argentina Political Climate Report - ARGENTINA September 28, 2018 POLITICAL CLIMATE REPORT IN THIS ISSUE The Macri administration is looking to restore confidence in the markets Page 3 following weeks of economic turmoil. A modified agreement between Government reduces cabinet ministries Argentina and the International Monetary Fund, changes in central bank in effort to show austerity strategy and the ongoing debate to finalize the 2019 budget may prove Page 5 pivotal to stabilize the local economy. With brewing social unrest, Unions hold fourth general strike ongoing corruption investigations into the previous administrations and Page 6 Macri’s announced bid for reelection in 2019, the government will have Carlos Rosenkrantz named new to perform a delicate balancing act between mitigating short-term president of the Supreme Court unrest and achieving longer-term objectives. Page 7 More chapters in the notebooks scandal Tying it all together: the IMF agreement, central bank Page 8 changes, and the 2019 budget G20 watch In late August and early September, the Macri administration scrambled to respond to a fresh plunge in the already-depreciated Argentine peso (relative to the U.S. dollar). The crisis culminated in a series of measures taken by the government to reassure investors and restore confidence in the markets, including renegotiating the USD 50 billion stand-by agreement with the International Monetary Fund (IMF), tightening 2019 budget and cutting the number of ministries.