Argentina Subsidy Cuts Mired in Doubt Under Kirchner Ally
- Batakis commits to chopping energy spending amid market fears
- Reducing subsidies is a key part of the nation’s IMF agreement
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A sudden change of economy minister in Argentina that gives the leftist faction of the ruling coalition a grip on the country’s finances poses a risk to a key part of its International Monetary Fund agreement -- weaning the population off energy subsidies.
Silvina Batakis was sworn in this week after Martin Guzman, an economic moderate who negotiated the IMF deal earlier this year, resigned in part because government officials appointed by Vice President Cristina Fernandez de Kirchner blocked him from implementing energy policy as he wished. Batakis is an ally of Kirchner, a long-time antagonist of global markets and the IMF.