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Argentina to ‘Take More Time’ Reducing Energy Subsidies

  • Economy Minister Guzman says Ukraine impact affects subsidies
  • Guzman sees monthly inflation in May slowing compared to April
Martin Guzman

Martin Guzman

Photographer: F. Carter Smith/Bloomberg

Argentina will reduce energy subsidies for utility bills at a slower pace than anticipated because of higher costs stemming from the impact of Russia’s invasion of Ukraine, Economy Minister Martin Guzman said Saturday. 

Reducing energy subsidies is a key part of Argentina’s $44 billion agreement with the International Monetary Fund because it will help the government close its fiscal deficit. Politically, it’s also the most controversial part of the program, exacerbating an internal divide within the ruling coalition.