Lorenzino, who had been Economy Minister since 2011, will head a newly created entity called the Executive Restructuring Unit to oversee attempts at resolving the nation’s legal conflict with holdout creditors, according to the statement
Argentina Replaces Economy Minister, Central Bank President
Argentine PresidentCristina Fernandez de Kirchnerchanged her Economy Minister and Central Bank President today on her first day back to work following head surgery on Oct. 8.
Deputy Economy Minister Axel Kicillof will replace Hernan Lorenzino as minister while Carlos Fabrega will become the new central bank chief in place of Mercedes Marco del Pont, according to astatementread by presidential spokesman Alfredo Scoccimarro. Fernandez also named Jorge Capitanich, the governor of Chaco province, her new Cabinet Chief.
Fernandez, 60, reappeared today in a pre-recorded video to thank Argentines for their support during her medical leave which she described as “very difficult.” Doctors discovered a blood clot near her brain during a routine heart exam and decided to operate, Fernandez said.
WhileArgentinaposted 8.3 percent economic growth in the second quarter from a year earlier, the nation has an estimated annual inflation rate of about 26 percent and has lost $11 billion of international reserves this year. Central bank reservesfellto $32.3 billion today, the lowest since Jan. 2, 2007.
Fernandez’s government has also struggled to close a widening gap between the official exchange rate of 6 pesos per dollar and a black market where Argentines pay as much as 9.87 to obtainforeign currencydue to restrictions imposed since her re-election in 2011.
During her convalescence, Fernandez missed Oct. 27 congressional elections in which her ruling alliance garnered just 33 percent of the votes nationwide and her main candidate in the province ofBuenos Aireslost by 12 percentage points. While her alliance kept their hold on Congress, the results ended any hopes she may have had ofseekinga third consecutive term when her current period ends in 2015.
Lorenzino, who had been Economy Minister since 2011, will head a newly created entity called the Executive Restructuring Unit to oversee attempts at resolving the nation’s legal conflict with holdout creditors, according to the statement.
Del Pont held the post of central bank president since 2010. Fabrega was previously head of the state-run bank Banco de la Nacion Argentina. Fernandez also named Carlos Casamiquela as the new Agriculture Minister.