“It is a chronicle of death foretold,” said Mariel Fornoni, director of Management and Fit Consultancy, adding that President Fernandez was badly wounded by a painful defeat for the government in last year’s midterm elections.
“Now he’s lost another piece of his board, perhaps the most important one, and he’s feeling increasingly lonely.”
Investors already worried about the country’s economic prospects have pushed bonds down to 20 cents on the dollar in recent weeks. All eyes will now be on Mr Guzman’s successor.
Mr Guzmán, 39, said there had to be “a political agreement within the governing coalition” to choose his successor.
The President’s Office said it did not yet know when Mr Guzman’s replacement would be announced. A government source said Mr Fernandez called his cabinet members and colleagues for an emergency meeting.
Two Economy Ministry officials, who spoke on condition of anonymity, said Mr Guzmán’s position had become untenable, especially without the support of his economic agenda.
“He couldn’t continue without equipment and against (Vice President) Cristina (Fernandez de Kirchner),” said one of the two men. “If you can’t do it anymore, it’s an act of responsibility to let go.”
Mr Guzmán appears to have given up his letter of resignation while Ms Fernández de Kirchner delivered a speech commemorating former Argentine President Juan Domingo Perón.
Miguel Kiguel, a former finance minister in Argentina, told Reuters that whoever takes office will have a tough time, noting that inflation could reach 80 percent this year and about 100 percent between official and parallel exchange rates. is the difference.
“We don’t know who’s coming, but it’s going to be very hot potatoes,” said Mr. Kiguel. “Whoever comes will have it very complicated.”
Mr Guzman was the driving force in securing a new $44 billion deal with the IMF earlier this year to replace a failed program dating back to 2018. However, he was unable to contain skyrocketing inflation, exacerbated by the war in Ukraine. The cost of importing energy has weighed on the country’s currency reserves.