Argentinian President-elect Alberto Fernandez will unveil his new cabinet today as he prepares to take office on December 10.
While little detail has been given thus far, it is expected that political scientist Santiago Cafiero will be chief of staff and that former Buenos Aires governor Felipe Solá will become foreign minister.
As Fernandez takes office, Argentina risks a ninth debt default. The country’s economy has been mired in recession for the last year, with annual inflation above 50%, sky-high interest rates and dollar reserves that have been critically depleted to prop up the tumbling peso.
Today’s announcement will indicate whether the Peronist government seeks to move the country further left after four years under the market friendly president Mauricio Macri. Buenos Aires is currently in talks with creditors and the IMF to ease the burden of the country’s debt, with restructuring talks involving around $100 billion.
Should Fernandez’s cabinet indicate a leftward shift, a stand-off with creditors could ensue, which would be disastrous for the Argentine economy. That could mean another legal battle akin to that which locked Argentina out of capital markets for more than a decade after its catastrophic 2001 default.
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