ARGENTINA’S new economic “super minister” pledged yesterday to respect the crisis-wracked country’s commitment with the International Monetary Fund (IMF) to reduce its public deficit to 2.5% this year.

As part of Argentina’s long-running negotiations with the IMF to restructure a US$44 billion (RM196 billion) debt, authorities had agreed to progressively reduce the public deficit from 3% last year to 0.9% by 2024.

“We will meet the goal of the 2.5% primary fiscal deficit. We will make the necessary corrections to comply with our word,” said Sergio Massa, in an announcement of his first measures as the new “super minister” in charge of the economy, development and agriculture ministries, as well as relations with international organisations.

Argentina has suffered years of economic crisis, with some 37% of its population now living in poverty.

Inflation for the first half of this year alone topped 36%, and is predicted to reach 80% by the year’s end.

Speaking at a press conference after being officially presented by President Alberto Fernandez in his new job, Massa described inflation as the “biggest poverty factory” in the country.

“Inflation is one of the main issues to fight. The last month and the one just started will be the most difficult in terms of inflation and from there we will begin a downward curve,” said Massa, 50, a lawyer by trade who on Tuesday resigned as president of the lower house of congress to take up his new post.

“We are beginning a new stage of government that I am convinced we will come through successfully,” said Fernandez at Massa’s swearing-in ceremony.

One of Massa’s toughest challenges will be to increase Argentina’s available international reserves, which analysts say are at critical levels.

A problem he won’t be able to solve, though, is the ongoing power struggle inside the ruling Frente de Todos political coalition between Fernandez and Vice President Cristina Kirchner, herself a former president. – AFP, August 4, 2022.