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Apr-27-2008In Argentina's Grain Belt, Farmers Revolt Over Taxes(topic overview)
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BUENOS AIRES (Reuters) - Argentine Economy Minister Martin Lousteau resigned on Thursday after less than five months managing Latin America's No. 3 economy and was replaced by the tax agency chief, a government source said. Lousteau, 37, had looked increasingly isolated in recent weeks and was sidelined in tense negotiations between the government and the country's disgruntled farmers, raising speculation that he would not last in the job. "He's presented his resignation," said the source, who asked not to be identified. He added that Lousteau's replacement would be economist Carlos Fernandez, head of the AFIP tax agency and a close ally of President Cristina Fernandez and her husband, ex-President Nestor Kirchner. [1] BUENOS AIRES, Argentina (AP) — Argentine Economy Minister Martin Lousteau is resigning, the country's official news agency reported Thursday. The Telam news agency cites unidentified Economy Ministry sources as saying that the 37-year-old minister submitted his resignation late Thursday. Other news media including the major daily newspapers La Nacion and Clarin are also reporting the resignation. Lousteau was the head of a state-run bank when he was tapped for the economy job by President Cristina Fernandez in December.[2]
Buenos Aires, Argentina (AHN) - Argentina's economic minister has stepped down over rising inflation and a dispute with farmers over a tax rise on product exports. Argentina's economy minister, Martin Lousteau, resigned from his post after only five months into the administration of President Cristina Fernandez de Kirchner.[3] The Argentine Economy Minister Martin Lousteau has resigned after just four months of President Cristina Fernandez de Kirchner's administration as the Argentine bonds slipped 1.7 percent today. In South America's second-largest economy Lousteau has failed to gain effective control of the economy which was highlighted by his failure to control a farmers strike which resulted in food shortages and huge anti-government rallies and demonstrations across the country.[4] An Argentine government official announced on Friday that the economy minister has resigned, marking the first important departure from the four-month old administration of the new President Cristina Fern'ndez de Kirchner. The 36- year- old minister, Martin Lousteau, who previously headed a state-run bank, has reported that he had problems in battling inflation by price controlling and several attempts to redistribute the soaring farm profits that were stoked by the global food prices. Recently, the independent- minded minister had to face with a serious 21- day farm strike and the continuously increasing inflation, over which him and other officials were unable to settle upon and decide on the direction of the economy.[5] April 25 (Bloomberg) -- Argentine Economy Minister Martin Lousteau resigned four months into President Cristina Fernandez de Kirchner's administration amid disputes over farm policies and accelerating inflation in South America's second-largest economy.[6]
President Cristina Fernandez de Kirchner herself has accused the agricultural sector of seeking excessive profits and of demonstrating "pre-democratic" tendencies, reinforcing fears of a breakdown in talks and new strikes. Those concerns have caused bond yields to widen, while country risk has risen to a three-year high. The continuing stalemate may lead to cabinet changes -- it is generally assumed that Economy Minister Martin Lousteau's days are numbered -- although in practice this is unlikely to herald any shift in policy. This bleak panorama for future talks is not likely to be brightened by the news that former President Nestor Kirchner will take over the presidency of the ruling Peronist party in the next few days, after the electoral authorities disqualified his only competitor for the post.[7] Buenos Aires - Argentine Economy Minister Martin Lousteau got the boot from President Cristina Kirchner after four months in office over a farmers strike and differences within her administration over economic policy, national media reported Friday, citing a ministry spokesman.[8] BUENOS AIRES (Thomson Financial) - Economy Minister Martin Lousteau was sacked Thursday by President Cristina Kirchner because he did not agree with her economic policy, a government official told Agence France-Presse. The president asked Lousteau for his resignation because of differences on how to carry out her economic policy, the official said.[9]
Since March, Carlos Fernandez headed the Federal Public Income Administration, or tax agency, known as AFIP in Spanish. Previously he was economy minister for the populous and economically powerful province of Buenos Aires. Other jobs with the national government included economy subsecretary for relations with the provinces and national director of tax coordination with the provinces. He also worked as subsecretary of fiscal policy in Buenos Aires province. He has a degree in economics from La Plata National University, and specialized in public finance and tax administration. He is a Peronist and considered close to President Cristina Fernandez and her husband ex-President Nestor Kirchner, as well as to powerful Cabinet Chief Alberto Fernandez. He also has a reputation as a technocrat, having worked in previous administrations since the late 1980s.[10] Lousteau was replaced by Carlos Fernandez, a trusted ally of former president Nestor Kirchner, who was until Thursday head of the Internal Revenue Service and in the past has occupied several other posts in difficult moments on request from Mr. Kirchner. "He thinks in economics in the same terms as us and will go ahead with the main government guidelines", said Alberto Fernandez. "He will guarantee the course of action which President Cristina Kirchner has decided for the economy". Carlos Fernandez who is scheduled to be sworn in the job Friday, 19:00 hours in mid morning statements said "nothing should change; I'm fully committed to this economic policy and to the leadership of Kirchner". As to the reasons for his predecessor's exit Mr. Fernandez said "Lousteau, and his team decided on the sliding oilseed and grain export taxes on his own and which the rest of the government supported: But they generated a huge conflict both for him and for the administration, which is besides the fact we will continue to support his concepts on taxing".[11]
Daniel Kerner, a Latin American analyst at the Eurasia Group, said Lousteau was one of the few voices in the Fernandez Cabinet challenging the overall direction of economic policy and growing inflationary imbalances. He said Fernandez's troubles are slowly changing perceptions that the economy has been bounding ahead year after year. "This is changing under Cristina as the government is affected by one crisis after another," he said. "This will reinforce the sense of chaos, a sense that Cristina cannot control political and economic dynamics." Argentina, an agricultural powerhouse, is both profiting and suffering from the global food crisis, as farmers benefit from a price bonanza and the poor — a quarter of the nation's 40 million people — contend with skyrocketing food costs. The government has been using price-control accords with beef suppliers, dairy producers and bakers to hold back inflation, first under President Nestor Kirchner and now under his wife, who took office in December.[12] Fernandez, an expert on state finance close to former president Nestor Kirchner (2003-2007), is to be sworn in Friday at the presidential palace, state news agency Telam said. Lousteau who took over the economy portfolio when Kirchner was sworn in on December 10, leaves his post as her government struggles to resolve a bitter dispute with farmers who staged a crippling three-week strike last month. At a government function late Thursday, Nestor Kirchner questioned "economists and leaders who want to cool down the economy," with its accumulated growth rate of 45 percent over five years. "If the economy cools down, Argentines dont consume, they dont eat, and without consumption, they can export more and earn more," Kirchner said, in a veiled reference to the countrys agricultural producers. On April 2, Argentina 's farmers declared a 30-day halt to a their strike, which was the first major test of the new Kirchner government and, some say, sharply eroded its power. During their 21-day strike, thousands of farmers erected some 400 road blocks in central Argentina, leading to unprecedented shortages of food and raw materials in major urban centers.[13] "Lousteau was seen as an orthodox economist who would have been more likely to address the inflation problem.'' Lousteau's resignation comes just four months after President Cristina Fernandez de Kirchner succeeded her husband, Nestor Kirchner. Shortages of products such as beef and poultry have surfaced in South America's second-biggest economy after farmers carried out a three-week nationwide strike last month to protest the export taxes.[14] Working for four months into President Cristina Fernandez de Kirchner's administration, Lousteau resigned over the accelerated inflation rate in South America's second-largest economy. Lousteau tried to answer to the question posed about the credibility of inflation figures and avert a protest by farmers this year that led to food shortages, but to no avail.[15]
In March, President Cristina Fern''ndez de Kirchner announced the third tax hike in six months on exports of soybeans and other products -- part of an overall strategy that aims to keep local food prices low and generate revenue. That revenue, she said, would allow the government to redistribute the agricultural sector's disproportionate wealth to the people most vulnerable to price hikes. Farmers balked at her plan, launching a three-week strike and setting up roadblocks that sparked food shortages and intensified inflation.[16] A few heads of state have tried to legislate the problem away. With rice prices doubling in the past year, Filipino President Gloria Macapagal-Arroyo has introduced a massive program to boost production of the grain--and raided warehouses suspected of hoarding. (Remember Gerald R. Ford's "Whip Inflation Now" that, among other things, encouraged farmers to plant more to keep food prices low?) Farmers in Argentina blocked highways for three weeks after new President Cristina Fernndez de Kirchner raised export taxes on soybeans, among other products, effectively forcing producers to sell their food domestically at lower prices. Her move has only created artificial scarcity. India has taken a novel approach to its 7% inflation rate--at least where steel, a commodity nearly as critical as rice, is concerned.[17]
Former President Kirchner said last night that farmers opposing a new variable export tax on grains and oilseeds are trying to "freeze'' Argentina's economy, which has grown faster than 8.5 percent in each of the past five years following the country's default on $95 billion of bonds in 2001. "They want to sell everything abroad because food prices are absolutely expensive,'' Kirchner said in a speech to Peronist party supporters in Buenos Aires province. "They don't care about the stomachs or pocketbooks of Argentines.''[6] BUENOS AIRES, Argentina (CNN) -- Argentina's economy minister has resigned in the wake of a crippling farmers' strike that emptied store shelves and cut exports, the country's news agency reported.[18] Argentina's economy minister, Martin Lousteau, has resigned after less than five months on the job, officials say. He was behind a tax rise on soybean exports, which triggered a three-week strike by Argentine farmers that resulted in widespread food shortages.[19] BUENOS AIRES: Argentine Economy Minister Martin Lousteau has resigned, a government source said on Thursday. Rumors had been circulating about his likely resignation in recent weeks amid tense talks between the government and the country's farmers, who ended a three-week strike this month.[20] BUENOS AIRES, Argentina (AP) — Argentine Economy Minister Martin Lousteau has resigned, a government official told The Associated Press Thursday. The official is close to the Economy Ministry, but asked not to be identified further because he is not authorized to speak on behalf of the government and the announcement is not yet official.[21] ECONOMY-ARGENTINA: Mr. Kirchner, the 'minence Not-So-Grise By Marcela Valente BUENOS AIRES, Apr 25 (IPS) - Above and beyond its impact on the markets or the economy itself, the change of economy minister in Argentina has clearly demonstrated the enormous power that former President N'stor Kirchner exerts within the government of his wife and successor, President Cristina Fern'ndez, analysts say. Mart'n Lousteau resigned as economy minister Thursday night after hearing Kirchner's speech at the launch of his presidency of the governing Justicialista (Peronist) Party (PJ), in which he indirectly criticised the minister's proposals for controlling rapidly increasing consumer prices.[22] BUENOS AIRES, Argentina (AP) — Argentina's economy minister has resigned in the first major departure from President Cristina Fernandez's four-month-old administration, a government official said Friday.[23] BUENOS AIRES, April 25 (Reuters) - The replacement of Argentina's economy minister shows President Cristina Fernandez and her husband, former President Nestor Kirchner, will keep tight control of economic policy, analysts said on Friday.[24] Mr. Fernndez, a former economy minister of Buenos Aires Province, was also an adviser to former President Nstor Kirchner, the husband of the current president. He said Friday that government economic policy would not change. Before resigning late Thursday, Mr. Lousteau met with Mrs. Kirchner and presented her with a plan to stabilize the economy, urging her to adopt it to "avoid a serious crisis," the Argentine newspaper La Nacin reported.[25]
Lousteau's replacement is Carlos Fern'ndez (no relation to the president), an economist who only a few weeks ago was appointed head of the Federal Administration of Public Revenues (the tax office). In that position, he had a very low profile, but was in almost daily contact with Kirchner. In the reshuffle, Guillermo Moreno, the domestic commerce secretary, was confirmed in the post he has held since the Kirchner administration (2003-2007), although he is under fire for his controversial price control methods and his growing influence, which some observers say is even greater than that of the economy minister. "It's not that Kirchner has a growing influence on the Fern'ndez administration, but rather that he is in charge; he is the political leader, and her role is merely formal," political scientist Sergio Berensztein, a professor at Torcuato Di Tella University and a member of the consulting firm Poliarquia, told IPS. "The Kirchners believe that increasing their political power will give them control over inflation, and so they generate greater confrontation and uncertainty," said Berensztein, who added that this is not a new strategy, but one that has become more accentuated since the new government took office on Dec. 10.[22] Lousteau's resignation took place in the midst of an unresolved conflict between the government and farmers' associations, and at a time when inflation appears to be spiralling out of control. The economy minister had proposed measures to curb prices, but Kirchner appeared to dismiss these out of hand in his speech Thursday. "Those who bankrupted the country now want to freeze the economy! Let's have an end to this hypocrisy! To lower prices, we must get rid of shameless speculators!" roared the former president, to ovations from the party faithful.[22]
Martin Lousteau, a 36-year-old wunderkind and former head of a state-run bank, reportedly had run-ins with other Fernandez aides over inflation and the direction of the economy after a bitter 21-day farm strike. The president's youngest cabinet minister submitted his resignation late Thursday, according to a source close to the Economy Ministry, who asked not to be identified by name because he is not authorized to speak on behalf of the government.[23] Lousteau, 37, struggled to address questions about the credibility of inflation data and avert a strike by farmers that led to food shortages and the biggest anti-government demonstrations since 2001. His appointment to the Economy Ministry was one of the few cabinet changes Fernandez made after succeeding her husband, Nestor Kirchner, as president Dec. 10.[6] The 36-year-old Lousteau, who was the youngest member of President Fernandez's cabinet, wanted to raise a tax on soybean exports that led a three-week strike by Argentine farmers, resulting in widespread food shortages. He wanted to increase 44 percent as a tax on exported products such as soybeans and sunflowers, which the farmers protested. "This is a negative development," Cristina Panait, an emerging-market strategist at Los Angeles-based Payden & Rygel, which manages more than $50 billion in assets, told Bloomberg.[3] "I will continue to work to ensure that things go well." Lousteau, 36, left his post as the government struggles to resolve a bitter dispute with farmers who staged a crippling three-week strike last month over a tax hike on soybean exports. April 2, the farmers declared a one-month halt to their strike, which was the first major test of the new, four-month-old Kirchner government and, some say, sharply eroded its authority. During their 21-day protest, thousands of farmers erected some 400 road blocks in central Argentina, leading to unprecedented shortages of food and raw materials in major urban centers.[26]
Lousteau was the architect of a tax hike on soy exports that triggered a three-week strike by the country's farming sector last month. He has been increasingly sidelined and hardly appeared during the talks with farmers, which have instead been led by Cabinet Chief Alberto Fernandez and controversial Domestic Commerce Secretary Guillermo Moreno, the government's price watchdog as it battles inflation.[1] Lousteau's replacement is to be the head of the tax agency, Carlos Fernandez, according to a report in La Nacion newspaper. Speculation had swirled recently that Lousteau, 37, who resigned late Thursday, would depart because he had been the driving force behind a tax hike on soya exports that caused a three-week farmers strike last month, had clashed with Domestic Commerce Secretary Guillermo Moreno and disagreed with Kirchner on the risk of inflation.[8] Carlos Fernandez, who is not related to the president and was named head of Argentina's tax agency in March, was sworn in as Lousteau's replacement today at the Presidential Palace in Buenos Aires. "I'm concerned about the economy,'' Fernandez told reporters today outside his home on the outskirts of Buenos Aires. He asked farmers to "remain calm, I'll do my best.''[6] BUENOS AIRES (AFP) — Carlos Fernandez, the head of Argentina's tax collection agency, took over as economy minister Friday after his predecessor was sacked amid spiralling inflation and anger among farmers.[26]
BUENOS AIRES, April 25 (Reuters) - Carlos Fernandez was named Argentina's economy minister on Thursday to replace Martin Lousteau, who resigned. Here are some facts about him.[10] BUENOS AIRES, April 25 (Reuters) - Argentine bonds closed down 3.2 percent on average on Friday, a day after Economy Minister Martin Lousteau resigned, while the peso languished at its lowest level since January 2003 in informal trade.[27]
April 25 (Bloomberg) -- Argentina's benchmark dollar bonds fell the most in nine months after Economy Minister Martin Lousteau resigned amid a surge in inflation and a dispute with farmers over an increase in export taxes.[14] RIO DE JANEIRO - Martn Lousteau, Argentina's embattled economy minister, resigned late Thursday after less than five months in the job, amid rising inflation and a protracted conflict with farmers over government tax policy.[25] The departure of independent-minded economy minister Mart'n Lousteau reignited questions about Argentina's ability to tame soaring inflation and resolve a farmbelt tax rebellion. He quit as the government battles inflation with price controls and attempts to redistribute soaring farm profits stoked by global food prices.[28]
Lousteau reportedly had feisty run-ins with other officials over the direction of the economy after a 21-day farm strike a bitter fight with the government over how to divide the windfall proceeds of soaring grain prices. The new economy minister, Carlos Fernandez, who was sworn in on Friday, said he is not proposing any immediate policy changes.[29] Martin Lousteau, 36, is to be replaced Friday by Carlos Fernandez, the head of Argentina 's tax collection agency, the state news agency said. "The president asked Lousteau for his resignation because of differences on how to carry out her economic policy," a government official told AFP early Friday.[13] Carlos Fernandez was the last to join the Cabinet, after Martin Lousteau resigned early Friday as finance minister after four months in office, over a farmers strike and differences within the president's administration over economic policy.[30] Martin Lousteau resigned from the cabinet and was replaced by Carlos Fernandez, an economist who is seen as close to President Cristina Fernandez and her husband, ex-President Nestor Kirchner.[31] Martin Lousteau's departure comes 4' months into the administration of President Cristina Fernandez de Kirchner. He is the first senior member of the new president's team to step down. Lousteau presented his resignation Thursday afternoon, according to the Telam, the National News Agency of Argentina.[18] The government's refusal to curb public spending in order to slow economic overheating and inflationary pressures means that there will be no change in policy. This determination to avoid unpopular spending cuts will be strengthened by recent opinion polls that show that approval of both President Cristina Fernandez de Kirchner and her government's performance has fallen dramatically in the four months since she took office, to around 35% or less. The appointment of a new minister with little apparent policy autonomy, seemingly willing to accept the limitations on his influence, tends to confirm this perception.[32] They are all unrelated, but they share the same surname: as from Friday, there are four officials with the name Fernandez in the Argentine leadership, including President Cristina Fernandez de Kirchner, dpa reported. First names will be key to recognizing functions and avoiding confusion between the president and three of her ministers: Chief of Staff Alberto Fernandez, Security and Justice Minister Anibal Fernandez, and new Finance Minister Carlos Fernandez.[30]
At the beginning of April Argentine farmers who had been striking for three weeks to protest the hike of export levies on oilseeds and grains plus other grievances referred to manipulation of markets, began a three weeks strike with road blocks that left cities short of food and triggered a crisis for the government of President Cristina Fernandez de Kirchner.[33] Argentine President Cristina Kirchner has sacked her economy minister, amid spiralling inflation and her government's bitter conflict with armers over a tax hike on soybean exports.[13] Analysts said the appointment would do little to alter the perception that key economic decisions are taken by President Fernandez and Kirchner, who have dismissed traditional monetary policy solutions to inflation. Both have emphasized state intervention and a weak currency to stimulate exports in an economic program that has seen the economy grow more than 8 percent in each of the last five years.[24] President Fernandez insists the export taxes are vital to the economy, redistributing farm profits to less fortunate Argentines and encouraging growers to produce fewer soybeans and more food that would be eaten at home. Anguished farmers say they are barely getting by under the duties, now as high as 45 percent, on a business that reaped Argentina some US$13.5 billion (8.5 billion) last year. "Soybeans are feeding us all," fumed one farmer, Carlos Ranalli, after harvesting golden soybeans on his 1,000-acre (400-hectare) spread in the farm town of Ferre.[29]
Farmers in Argentina launched a nation-wide strike in the second week of March in protest against an increase in export taxes on soybeans from 35 percent to as much as 45 percent, and the introduction of new duties on other farm exports meant to combat inflation.[34] The agency report didn't disclose a reason for Lousteau's resignation. Farmers in Argentina went on strike last month to protest a 44 percent export tax on products such as soybeans and sunflowers. They suspended the strike earlier this month after three weeks.[18] The three week strike began last month led and lead to road blockades which caused shortages of beef and dairy products. The farmers opposed a new variable export tax on both grains and oilseeds are trying to control prices in the Argentina's economy.[4]
Even though the strike has been stopped, farmers threatened to create new highway barricades if the government does not agree to offer concessions on a recent export-tax increase on soybeans and other crops. After Lousteau submitted his resignation late Thursday, it was expected that Argentina's tax chief to replace him. Indeed it was, as he was sworn in on Friday, promising continuity in the government's current economic policies.[5] The farmers have threatened to erect new barricades if the government does not offer concessions on the tax hike. It was the biggest crisis faced by Ms Fernandez since she took office in December. Mr Lousteau was one of few new faces in Ms Fernandez's cabinet, with most ministers retained from the administration of her husband, former President Nestor Kirchner.[19] Argentina is the world's third-largest exporter of soybeans and a leading exporter of beef, wheat and other grains. Lousteau was one of the few new faces in Fernandez's Cabinet, which includes several returning officials from the administration of her husband, former President Nestor Kirchner.[23]
"This is changing under Cristina as the government is affected by one crisis after another," he said. "This will reinforce the sense of chaos, a sense that Cristina cannot control political and economic dynamics." Argentina, an agricultural powerhouse, is both profiting and suffering from the global food crisis, as farmers benefit from a price bonanza and the poor a quarter of the nations 40 million people contend with skyrocketing food costs. The government has been using price-control accords with beef suppliers, dairy producers and bakers to hold back inflation, first under President Nestor Kirchner and now under his wife, who took office in December.[29] The benchmark Discount bond in pesos ended virtually unchanged at ARS100.05 with a yield of 10.45%, while the Bogar 2018, another peso note linked to inflation, rose slightly to ARS135.25, with a yield of 11.9%. Merrill Lynch cut Argentine debt to market weight Thursday, taking losses in its overweight recommendation. Merrill said it based its decision on concern that Argentine President Cristina Fernandez and her predecessor and husband, Nestor Kirchner, "have failed to adjust the economic policy mix, now facing an inflation situation that is unlikely to be resolved without significant costs."[35]
A federal court in the Argentine capital of Buenos Aires Tuesday decriminalized drug possession in the capital in a ruling that could be altered by the country's high court, but which is in line with the position of the government of President Cristina Fernandez de Kirchner. In issuing its ruling, the federal court threw out thousands of drug possession cases pending in the federal district.[36]
Fernandez, 54, an expert on state finance, was sworn in by President Cristina Kirchner at the presidential palace, replacing Martin Lousteau, who left after just four months on the job. "It is a challenge," Fernandez, who is close to Kirchner's husband, former president Nestor Kirchner (2003-2007), told reporters.[26] The Telam news agency cites unidentified Economy Ministry sources as saying that the 37-year-old minister submitted his resignation late Thursday. Other news media including the major daily newspapers La Nacion and Clarin are also reporting the resignation. Lousteau was the head of a state-run bank when he was tapped for the economy job by President Cristina Fernandez in December.[37] At 36, Mr Lousteau was the youngest member of President Cristina's Fernandez's cabinet. He also reportedly had run-ins with other ministers over inflation and the direction of the economy.[19]
President Cristina Fernandez did not have any comment on the matter. It is important to know that Carlos Fernandez, the new economy minister, is not related to her in any way.[5] The new economy minister, Carlos Fernandez, who was sworn in on Friday, promised continuity with the government's current economic policies, saying, "With my appointment, nothing has to change."[12] Carlos Fernandez, who specializes in public financing, will be the new economy minister, the agency said.[34]
Economy Minister Martin Lousteau resigned late on Thursday over apparent differences with Fernandez about how to combat inflation in Latin America's No. 3 economy.[24] Argentina's Economy Minister Martin Lousteau's resignation yesterday had been widely predicted and caused no surprise, apart from its timing.[32]
Argentina's Minister of Economy Martin Lousteau delivers a speech at the government house in Buenos Aires in this March 31, 2008 file photo.[21] Lousteau, 37, was head of Buenos Aires government-owned Banco Provincia before becoming economy minister. He co-authored a book with former central bank president Javier Gonzalez Fraga called "No Shortcuts.''[14] BUENOS AIRES, April 25 (Reuters) - The Argentine peso weakened in opening formal interbank trade on Friday after the economy minister resigned, but traders said bonds and stocks could have a muted reaction since the cabinet change was expected.[31] BUENOS AIRES, Argentina (AP) — The departure of an independent-minded economy minister is re-igniting questions about Argentina's ability to tame soaring inflation and resolve a farmbelt tax rebellion.[12]
Barclays Capital Inc. economists Eduardo Levy-Yeyati and Sebastian Vargas estimate Argentina's actual inflation rate is as high as 25 percent. Kirchner, seeking to drum up support for his wife last night, said that farmers opposing higher taxes on exports of grains and oilseeds are trying to "freeze'' the economy.[14] Instead Argentina is becoming a symbol of the far-reaching effects of global food inflation. Like other developing countries that depend on agricultural exports, Argentina is struggling mightily to figure out how to protect local food sources without breaking the backbone of its economy. "This country is in chaos right now," said Jos'' Ant''nio Oliveira, 54, who said he has been eating at the church food kitchen in recent months because he can't afford food at today's escalating prices. "They tell us the economy is growing, but what's growing is hunger.[16] In the last five years the economic growth has grown faster than 8.5 percent ever since the country's infamous default on $95 billion of bonds in 2001. Amidst high international prices and inflation the farmers crisis is also a lost opportunity for the country to strengthen its exports and take advantage of the hike in global food prices.[4]
Martin Lousteau, a 36-year-old economic wunderkind, left the Cabinet as the government battles inflation with price controls and attempts to redistribute soaring farm profits stoked by global food prices.[12]
Economist Claudio Lozano, a congressman for Proyecto Sur, said that Lousteau's replacement does not imply any change in economic policy because "it is still being managed by Kirchner and Moreno." This continuity is cause for concern because of the country's growing inflation, which is fuelling poverty and inequality, he said. Less vehemently, Anal' del Franco of the consulting firm Analog'as, which carries out opinion polls for the government, told IPS that Kirchner has a "high" level of involvement in his wife's administration, but denied that his participation weakened her. "They are a team. Their decisions are always shared," she said. "Yes, they are a team, but he is the one in charge," Berensztein amended.[22] The clash with the farming sector and the growing loss of control are widely attributed to confusion from the dual leadership of the presidential couple but perhaps the problems all stem from a single but mistaken policy source. The end of Lousteau's 135-day stint at the Economy Ministry effectively means that there is no change of any significance between the administrations of N'stor and Cristina Kirchner, now that the most surprising innovation of Cristina Kirchner's original Cabinet is gone ' nor is there any sign of any Plan B. Lousteau's replacement Carlos Fern'ndez is the 4th minister in a row of obscure background (and also the 4th since Domestic Trade Secretary Guillermo Moreno moved into that strategic position during the Easter of 2006, a post he has yet to relinquish).[38] Since the election of Kirchner's husband, Nestor, as president in 2003, Argentina has carried out a policy of strict control of the economy. Thanks to higher world prices for such Argentine products as soya, sunflower oil and beef, its economy has been growing nearly as quickly as China's. Cristina Kirchner has continued the economic policies of her husband's administration since she took office in December.[8]
However from the beginning government officials were intent in pushing ahead with the policy of "redistribution" of windfall earnings from soaring commodities prices, which farmers coldheartedly accepted but in exchange wanted more flexibility and less government interference with prices. The two Kirchner administrations have limited or suspended exports whenever they felt necessary to ensure Argentine consumers pay "Argentine prices" and not international prices for food.[33] The government and CRA, Coninagro, Argentine Agricultural Federation and Argentine Rural Society are locked in harsh talks after a sliding scale in export duties on soybeans was adopted, prompting farmers to launch a 21-day lockout that caused food shortages, food price increases and a suspension of grain exports.[39] New strike actions could disrupt exports of meat, grains and oilseeds and produce further domestic food shortages and price rises. Agricultural organisations are complaining about the threatening attitude of the government's internal commerce secretary, Guillermo Moreno, who has invoked 30-year-old laws that could lead to the jailing of those who fail to keep up domestic supplies.[7] The resulting widespread strike crippled exports of grains and meat and caused food shortages in stores.[25]
The minister had become increasingly isolated. He was left out of negotiations with farmers who have been on strike for weeks in protest against export taxes on their products. There was also disagreement with his approach to tackling the country's high inflation.[40] The crisis with agricultural producers' associations was triggered in March by the announcement of increased taxes on soybean exports, proposed by Lousteau. Disgruntled farmers blocked highways in the interior of the country for three weeks, interrupting food transportation by truck, until they declared a truce to participate in negotiations.[22]
Lousteau's resignation comes as Argentina's government confronts farmers opposed to a new export tax regime announced March 11.[6] Mr. Lousteau had been shut out of much of the day-to-day decision-making, analysts said. He focused on improving relations with the United States and looking for a solution to Argentina's outstanding debt, said Graciela Romer, a political analyst in Buenos Aires. He signed off on a series of floating-rate export tariffs on agricultural goods put in place on March 11 that incited a farmer revolt.[25] Juan Jose Vazquez, senior analyst at Bull Market Brokers in Buenos Aires, said Lousteau had recommended raising energy rates for residential customers, increasing public expenditures to fight inflation and being more conciliatory with farmers.[12] Mr. Lousteau was working on an index of prices to try to contain inflation, said Fernando Porta, an economist with the Center for Science, Development and Higher Education Studies in Buenos Aires. "He was admitting to her that there was a problem with inflation," Mr. Porta said.[25]
According to INDEC, annualised inflation to March 2008 was 8.8 percent, but private consulting firms say that it is at least 26 percent. When she was sworn in, President Fern'ndez promised new methods for measuring consumer prices, and Lousteau stated that he was working on a new index. The former minister could not reach agreement with Moreno over this issue.[22] Inflation rose 8.5 percent by official estimates last year — but independent estimates say it was more than twice that. International Monetary Fund managing director Dominique Strauss-Kahn met the new president in December when she took office and urged her to address complaints Argentina was not accurately tracking consumer price inflation.[12]
Like many economists, Lousteau believes that at present demand is increasing faster than supply, and therefore economic growth, which has exceeded eight percent a year since 2003, should slow down to avoid the price increases that are particularly affecting foods. He also maintains that interest rates should be raised slightly to encourage saving, and that the National Statistics and Census Institute (INDEC), which was subjected to government intervention by Kirchner in January 2007, should return to normal functioning. The institute, under the control of Secretary Moreno, has lost credibility since last year amid criticism by experts and a number of accusations concerning its statistics.[22] "There should be no more talk about cooling the economy," Kirchner said — apparently an allusion to Lousteau's recommendation a few days earlier that the government try decelerate growth as an anti-inflationary measure. Some opposition leaders called the personnel change an attempt by the former president to keep power over economic decisions by bringing in a member of his inner circle.[12] One hour later, Lousteau resigned. Cabinet chief Alberto Fern'ndez (no relation) said early on Friday that the president considered "his time was up," and he acknowledged that some of the departing economy minister's proposals "did not coincide with the general interest."[22] Lousteau reportedly resigned over differences on the direction of the economy after a 21-day farm lockout. Peace seemed to be breaking out or at least closer yesterday, with various farm leaders signalling they would be ready to extend the truce beyond this Friday if given any sign by new Economy Minister Carlos Fern'ndez that he is seriously interested in an accord.[28] Argentine Economy Minister Martin Lousteau has resigned over his disputed policies in the agricultural sector that crippled the country.[15]
Argentina's incoming Economy Minister "thinks in the same terms as us" and will follow on "with government main guidelines", said cabinet chief Alberto Fernandez who also confirmed that the controversial Secretary of Interior Trade, Guillermo Moreno remains in his post.[11] With the addition of Carlos Fernandez, there are now four people named Fernandez at the top levels of government in Argentina, including the president and her cabinet chief, and Justice Minister Anibal Fernandez.[10]
High inflation has become a major challenge for the government. One of the few new ministers appointed by Cristina Fernandez, the youthful Lousteau stood out in a cabinet dominated by faces from the previous government of her husband.[1] Country risk climbing to 589 points (more than twice the levels at the start of Cristina Kirchner's presidency four months ago) represents a definite loss of international confidence and investment prospects. The government's continuing denial of inflation (now reaching an annual 30 percent) is even more alarming than its inflexibility with the farming sector. Lousteau was ousted for seeking a soft landing to inflationary growth, an approach which includes less public spending (Lousteau dragged his feet on the 'bullet train') and higher interest, but his removal does not make action any less urgent ' the government should adjust while it still can without inflicting too much pain.[38] Critics of the government say price accords have lost effectiveness against inflation. Former President Kirchner defended them Thursday — in a speech that some say may have triggered Lousteau's departure.[12]
Mr. Lousteau, who is 36 and was trained at the London School of Economics, apparently grew frustrated with the government's response to rising inflation and the fallout from a three-week strike by farmers.[25] Traders had widely expected Lousteau's exit, but it still weighed on markets, which have been jumpy for days due to increasingly tense talks between the government and farmers, who staged a three-week strike last month. "It isn't good news since (Carlos) Fernandez is the type to give more power to (Domestic Commerce Secretary Guillermo) Moreno.[27] Mr. Lousteau refused to back down from the new measures, and Mrs. Kirchner harshly criticized the farmers in speeches. The farmers suspended their strikes on April 2, declaring a one-month truce to try to negotiate with the government.[25]
The farmers have halted the strike but threatened to erect new highway barricades if the government does not offer concessions on a recent export-tax hike on soybeans and other crops. Farmers say the duties, which are as high as 45 percent, have reduced their profits to a point where they can barely make a living.[23] The strike was suspended in early April, but farmers are threatening to resume highway barricades in May if the government does not offer concessions on a recent export-tax hike on soybeans and other crops.[12]
Lousteau reportedly had feisty run-ins with other officials over the direction of the economy after a 21-day farm strike — a bitter fight with the government over how to divide the windfall proceeds of soaring grain prices. [12] Farm strike leader Luciano Miguens has reported some progress in talks with the government, but said Friday that Lousteau's departure creates a new and "uncertain stage." Associated Press Writer Debora Rey contributed to this report from Ferre.[12] Currency trader Hector Blanco of local brokerage ABC Mercado de Cambio described the day's volumes and trading as "calm, although the market remains tense. There is uncertainty about how the government will handle this crisis." The central bank again apparently sold dollar futures to keep the peso from sliding, he said. "It will become more tense next week," as the May 2 farm strike deadline approaches, he added. Talks between government and farm leaders continued Thursday, although officials on both sides remained pessimistic.[35] A three-week strike by farmers that began last month led to road blockades and shortages of beef and dairy products across the country. Farm leaders said this week that there has been little progress in talks ahead of a May 2 deadline to resume protests.[6] Argentina, which is the second largest economy in South America, was recently affected by a three-week strike that resulted in many shortages, since the farmers have kept trucks from delivering food.[5] Argentina, the second largest economy in South America, was rocked recently by a three-week strike that caused widespread shortages when farmers blocked trucks from delivering beef, chicken and produce.[41]
The farmers' strike led to food shortages in the country as farmers blocked trucks from delivering beef, chicken and produce.[19]
'There is a political persecution of farmers by the government,' Santiago Rabasedas, one of the three vice-presidents of the Argentine Rural Confederation (CRA), told the Herald in an interview. This time, they will see that no food shortages are caused, he said.[39]
With only a week left for the end of the month long truce, negotiations between Argentine farmers and government are virtually paralyzed, --and with growing animosity--, while rural organizations begun to review protest mechanisms, taking lessons from the three weeks strike, in the event of the resumption of the conflict as of May 2.[33] Luciano Miguens, a leading figure in the strike, told Argentine television that some progress had been made in talks with the government but that Lousteaus departure would create "an uncertain stage" at a delicate time.[41]
Lousteau was replaced by the former head of Argentina's tax agency chief, Carlos Fernandez, who is considered close to the Argentine leader and her husband.[24] Reports said that Mr Lousteau, whose resignation has not been officially announced, would be replaced by Carlos Fernandez, head of the country's tax agency.[19] According to newspaper La Nacion, Carlos Fernandez, head of the country's tax agency, will replace Lousteau.[15]
In an interview with the AP early Friday, the official said Argentine tax agency chief Carlos Fernandez is expected to succeed Lousteau.[21]
Cristina Fernndez de Kirchner, Argentina's president, quickly named Carlos Fernndez, an adviser who briefly headed Argentina's tax agency, to succeed Mr. Lousteau.[25]
Guillermo H'skel Herald Staff One of Argentina's largest farm lobbies yesterday accused the administration of President Cristina Kirchner of politically persecuting farmers, and warned that if a conflict over wheat trade is not solved the area sown with wheat could drop up to 15 percent in the 2008-2009 season.[39]
Kirchner's influence is an open secret. Ministers and other officials admit privately that the former president phones them to tell them what they should or should not do. His d'but as head of the PJ and the change of minister suggest that Argentina's First Gentleman is beginning to step out of the wings and into the limelight. This view is shared by several opposition leaders. Elisa Carri', head of the Civic Coalition, who came second in the last presidential elections, said that "Kirchner is the real power in Argentina," and that his confrontational character "weakens the president's position."[22] Mart''n Lousteau was one of the few new ministers in President Christina Kirchner's cabinet, which came to power at the end of last year.[40] "The new minister is former president Kirchner's ally and his appointment indicates there is no immediate intention to turn the country's economic policies in the right direction,'' Panait said.[14] Venezuela deals with 20% inflation by spending more on social services. Hugo Chvez must think that no one will notice how much more expensive the necessities are if they're subsidized. In Iran, after the economics minister conceded his hands were tied when it came to fighting inflation (18% a year), President Ahmadinejad canned him.[17] By appointing a "status-quo minister, the government has shown no new flexibility in fighting inflation and in reaching accords with farmers," Vazquez said.[12] Lousteau's resignation "means that the policy direction will not change,'' said Pablo Morra, an economist at Goldman Sachs Group Inc. in New York. "This is negative because inflation is rising and policy corrections are needed. He pushed for change, but could not persuade the government and had to leave.''[14] Lousteau resigned due to differences over how to handle soaring inflation, which has soured an economic boom. "It isn't good news since (Carlos) Fernandez is the type to give more power to (Domestic Commerce Secretary Guillermo) Moreno.[31]
Dante Sica, director of Abeceb, an economic consulting firm in Buenos Aires, said inflation was 16 to 18 percent, about twice as high as the 8.8 percent that the government reported last month.[25] Claudio Mauro, an economist at M&S; Consultores in Buenos Aires, said April 10 that annual inflation is closer to 22 percent.[6]
"We know how much inflation affects income,'' Lousteau said April 22 in a speech in Buenos Aires.[6]
"The growing conflicts and a confrontational policy regarding farmers will deepen economic uncertainty and that will probably be reflected in more drops in President Fernandez's popularity,'' said Rosendo Fraga, a political analyst who runs Nueva Mayoria pollster in Buenos Aires.[6] Daniel Kerner, a Latin American analyst at the Eurasia Group, said Lousteau was one of the few voices in the Fernandez Cabinet challenging the overall direction of economic policy and growing inflationary imbalances.[29] Cabinet Chief Alberto Fern'ndez underscored that idea: 'No pillar of economic policy is going to be altered.' The resignation of Lousteau was announced after yesterday's Herald had gone to press.[42]
Standard & Poor's cut the outlook on the country's debt ratings to negative from stable, saying Lousteau's resignation "reflects the government's rejection of policies to correct the country's overheating economy.'' [14] Inflation -- and the government's efforts to control it -- have magnified existing fissures in the economy. The government and the country's agricultural producers for years have had a troubled relationship, but now they are locked in a full-scale war.[16] Argentina's booming economy has unleashed inflation, and Argentines are increasingly complaining about rising prices.[24]
Argentine bonds dropped sharply and the benchmark Merval stock index was off 1.3 percent on jitters over long-term prospects for the country's economy.[12] Since Mr. Kirchner was elected in 2003 in the wake of a financial crisis, the economy has grown by an average of 8 percent a year, in large part through a strategy of maintaining a low currency to increase exports and high subsidies on food and energy to encourage consumer spending. His wife has continued those policies. Those policies face increasing pressure.[25] Fern'ndez barely passes muster as an economy minister in the full sense of the term, being little more than a glorified accountant (or fiscal hack, to put it more bluntly). Ironically enough, this advance of the government's most hawkish wing headed by Moreno (and ultimately by N'stor Kirchner) seems to have improved the prospects of the truce with the farming sector extending beyond this coming Friday.[38] Meanwhile Senator Gerardo Morales, head of the Radical Civic Union party, said that the replacement of Lousteau by Carlos Fern'ndez "is another sign that the economy continues to be in Kirchner's hands."[22] Efforts to reach Mr. Lousteau were not successful. Messages left at his office and with his spokesman were not returned. Despite his title, Mr. Lousteau held little power to set the overall direction of Argentina's economy, which most analysts said was being controlled by the former president.[25] Santa Fe Governor Hermes Binner's reaction to the crisis ousting Mart'n Lousteau from the Economy Ministry has been to ask if the real president will please stand up but perhaps he already has.[38]
Fernandez's office has not made an official announcement. Asked what prompted the resignation, the source said he could not provide additional information. He said the president and top officials were meeting overnight and had designated Argentina's tax chief, Carlos Fernandez, as his successor. [23] According to the local reports, Carlos Fernandez, who is considered as an expert in public financing, will be replacing Martin Lousteau.[3] "I'm not sure the change was positive because Carlos Fernandez will be stronger defending the government position against farmers,'' said Marengo at Clariden Bank. "The government has to find a solution but it seems that this appointment puts more pressure.''[6]
After the 21-day strike, confidence in Cristina Fernandez's government fell 7 percent from the previous month and 19 percent from April 2007, according to a poll released yesterday by Torcuato Di Tella University.[6]
Lousteau was the architect of a tax hike on soy exports that triggered a three-week strike by the country's farming sector last month.[15] The failure to make serious progress on resolving the export tax dispute points to renewed strike action, although sector organisations are considering alternative methods less likely to undermine public support.[32]
The raising of export tariffs on soya products -- an agricultural mainstay of Argentina -- from 33 to 44.1 percent triggered the strike.[26] The 30-day 'truce' declared by the agriculture sector, following three weeks of damaging strikes and roadblocks that halted exports and left major cities without food supplies, will come to an end on May 2.[32]
BUENOS AIRES (Dow Jones)--Argentine markets were little changed Thursday, although market participants remain focused on tense farm talks, which continue to look unlikely to head off a resumption next week of March's disruptive strike.[35] BUENOS AIRES, April 25 -- Inside a busy church hall early Friday morning, many of the 60 men waiting for a free breakfast tilted their heads upward to watch news flashes periodically scroll across a wall-mounted television.[16]
Argentina's benchmark dollar bonds plunged to an eight-month low on Friday over the news of Lousteau's resignation. [3] Lousteau presented his resignation Thursday afternoon, Argentina's National News Agency the Telam reported, without disclosing the reason for resignation.[34]
As well as trying to tackle the inflation issue, Lousteau sought to advance talks on how to restructure Argentina's $6.3 billion debt with the Paris Club group of wealthy nations.[15]
For several months leading up to the presidential election last October, the Kirchners denied that inflation was rising quickly, insisting that official numbers from the government statistical agency, Indec, were accurate.[25] Economists say the government has been underreporting inflation after Kirchner appointed a political appointee last year to run the institute that compiles the data.[14] Inflation was officially reported as 8.5 percent last year, but private estimates put it at twice that much, and the government has been accused of underreporting the figures.[24] According to the government, Argentine inflation accelerated to 1.1 percent in March from February and to 8.8 percent from the same month a year earlier.[6]
The government's official annual inflation rate last year was 8.5 per cent, but independent institutions accused the government, and foremost Moreno, of altering the way inflation was calculated. They put the actual inflation rate at 20 to 26 per cent.[8] Way too subtle for many foreign governments, which don't so much tame inflation as bludgeon it. In Fiji, where inflation has doubled in the last year, to 8%, authorities are enforcing a long ignored ban on holding gold or foreign currency, requiring folks to "surrender" those assets to a dealer.[17]
Government inflation data has been questioned by opposition leaders, economists and institutions including the International Monetary Fund since Kirchner started replacing personnel at the national statistics institute in January 2007.[6]
Behind Kirchner's scorching attacks, the sliding scale for export duties (which most irked the farmers) is being quietly attributed to Lousteau and thus made negotiable. While Kirchner's rhetoric aims at elevating his feud with ranchers into a national cause, it is interesting to note that in his Friday tirade in Mendoza, he was no longer solely demonizing the countryside but also supermarkets (with even some implied criticism of middleman structures). Some rural circles are optimistically seeking gubernatorial mediation of their dispute with the national government but it has yet to be seen whether the farming leadership has any control over the grass-roots in striving to prolong dialogue.[38] Observers says that Mr Lousteau's departure proves that N''stor Kirchner is still interfering in government issues.[40]
Approval of Fernandez de Kirchner and her government has fallen dramatically in the four months since she took office.[32]
This country, in theory, should be protected from the global food crisis. Argentina's government touts steady economic growth, and in recent years the country has become a top exporter of the same grains, vegetable oils and beef that are now in such high demand. [16] Much of the country's farm products are exported to the United States, China, and Europe. The official demanded that the Dalai Lama must stop activities aimed at splitting China, such as plotting and inciting violence and disrupting and sabotaging the Beijing Olympic Games, so as to create conditions for talks. Although the Dalai Lama's spokesman Tenzin Takla welcomed the offer of talks, he said he has received no official notification from the Chinese government of its desire to meet Tibet's spiritual leader, the BBC reported.[34] With the simmering agricultural dispute over export taxes set to be renewed, it was assumed that the government would seek to defer cabinet changes in order to avoid the perception that it had caved in to pressure from the farm sector.[32] "There was a need of a change,'' said Silvia Marengo, who manages $130 million of emerging-market bonds at Clariden Bank, in a telephone interview from London. "It's terrible that the conflict with the farmers is making the country lose a big opportunity to boost exports amidst high international prices of commodities.''[6]
The 37 year-old minister had been recently isolated in tense negotiations between the government and the country's disgruntled farmers.[15] Mr. Lousteau was visibly absent from the talks. Farmers are threatening to resume blockades on Friday unless they see progress in negotiations with the government.[25]
How severe was last week's crisis? Friday's stock market reaction to Lousteau's exit (Merval down by 1.3 percent) could definitely have been worse and the dollar climbing to 3.28 pesos could even add up to the more 'competitive' exchange rate sought by the government (and even more fervently by manufacturing industry).[38] Annual inflation quickened to 8.8 percent last month, according to government figures.[14] Moreno is the government's price-control watchdog, who enforces the price accords the government has used as a key weapon against inflation.[27]
Now the New Delhi government is hinting that it might regulate prices. The threat spurred the nation's steelmakers to lower prices a smidgen. They weren't happy about it, since they're already paying more for coke and iron ore. Some populist politicians want to ban steel futures contracts, which they claim artificially drive up prices. That hasn't happened, though India has outlawed contracts in some grains.[17] The 30-day 'truce' declared by striking agricultural organisations at the beginning of April expires on Friday, and the failure of the government and the sector to resolve differences over export tax increases raises the prospect of new protests and roadblocks.[7] During the nationwide protest at hundreds of locations, the farmers and their supporters blocked more than 400 roads. They were demanding the government repeal the tax, which was implemented March 11. CNN's Carolina Cayazzo contributed to this report.[18] From the farmers' perspective, the government is threatening to smash the country's golden egg: soybeans.[16] The confrontation has deepened divisions between Argentina's upper and middle classes -- including many well-off farmers -- and the poor class, swollen by the country's 2001 financial collapse, which supports Kirchner.[26] Farmers said that, along with income taxes, transport costs and the high cost of land, it would push many out of business. Soybeans are dubbed "green gold" in Argentina for the sky-high prices they fetch on the world commodity market.[26] Half of Argentina's 30 million hectares of farmland are now given over to soybeans, which represent an export income of 24 billion dollars (15 billion euros) a year.[26] Argentina's economy has grown at rates above 8 percent in each of the last five years since a devastating crisis in 2001-2002.[1] The U.S. Fed has a tough act. It must check consumer prices, up 4% in February from a year earlier, while trimming interest rates to keep the economy from slipping off a cliff.[17]
"The government appears to be showing few signs that it understands the limitations of the current model," which overheats the economy, Merrill added, noting that "it might take a political crisis for the administration to change gears."[35] Critics, including former Economy Minister Roberto Lavagna, called it manipulation.[6]
During a recent UN session, Argentine Justice and Security Minister Anibal Fernandez called the policy of punishing drug users "an absolute failure."[36] Fernandez, who has a degree in economics, is a close confidante of Kirchner. Prior to his current job, he held regional economic posts.[23] Despite Kirchner's ferocious rhetoric, the farming leaders might well opt to interpret Lousteau's removal as a concession in order to keep negotiations alive ' even more opportunely, the youthful ex-minister's curly head could serve as a convenient receptacle for blame.[38] Local media have said Lousteau clashed with the powerful Moreno over the design of a new consumer price index, a project aimed at restoring credibility to the INDEC national statistics office.[1] The yield on Argentina's benchmark 8.28 percent bonds maturing in 2033 jumped 65 basis points, or 0.65 percentage point, to 10.98 percent at 4:11 p.m. in New York, according to composite data compiled by Bloomberg.[14] Several officials who had left Indec, however, criticized a new methodology for calculating inflation established by a political appointee.[25]
Many consumers side with Fernandez that farmers should be more generous with the windfall to subsidize basic foodstuffs and keep prices low. [12] The price is the lowest since the government issued the security in December 2005. "This is a negative development,'' said Cristina Panait, an emerging-market strategist at Los Angeles-based Payden & Rygel, which manages more than $50 billion in assets.[14]
SOURCES
1. Reuters.com
2. The Associated Press: Report: Argentine economy minister resigning
3. Argentina's Economic Minister Resigns Over Exports Tax Dispute | April 27, 2008 | AHN
4. Martin Lousteau Resigns.
5. Argentine Economy Minister Resigns
6. Bloomberg.com: Latin America
7. The World Next Week - Argentina: strike and stalemate
8. Argentine economic minister forced out over strike, policy disputes : World
9. Argentine economy minister fired - govt official | Latest News | News | Hemscott
10. FACTBOX-UPDATE 1-Facts about new Argentine economy minister | Markets | Markets News | Reuters
11. Mercopress
12. The Associated Press: Argentina changes economy ministers
13. Argentine economy minister fired amid spiralling inflation
14. Bloomberg.com: Latin America
15. Press TV - Argentine economy minister resigns
16. Argentina Tries to Reconcile Exporting Food With Prices at Home - washingtonpost.com
17. Attacking Inflation - Forbes.com
18. Argentina's economy minister steps down - CNN.com
19. BBC NEWS | Business | Argentina's economy chief quits
20. Argentine economy minister resigns: Government source- International Business-News-The Economic Times
21. The Associated Press: Official: Argentine economy minister resigning
22. ECONOMY-ARGENTINA: Mr. Kirchner, the 'minence Not-So-Grise
23. The Associated Press: Official: Argentine economy minister out
24. New Argentine econ chief seen close to president | Markets | Bonds News | Reuters
25. Top Official on Economy Steps Down in Argentina - New York Times
26. AFP: Argentine tax chief takes over as economy minister
27. Argentina markets hit by economy minister's exit | Markets | Markets News | Reuters
28. Buenos Aires Herald
29. New Argentine economy minister says no changes planned - International Herald Tribune
30. Trend News : Yet another Fernandez joins the Argentine government
31. Argentine mkt reaction to Lousteau exit seen muted | Markets | Bonds News | Reuters
32. The World Next Week - Talking Point - Argentina: cabinet chaos
33. Mercopress
34. RTTNews - Political News and Chatter, World Political News, Forex News, Earnings Revisions .
35. Argentina Stks, Bonds, Peso Little Changed As Farm Strike Looms
36. Latin America: Argentine Court Decriminalizes Drug Possession in Buenos Aires | Stop the Drug War (DRCNet)
37. Reports: Argentine economy minister is resigning - International Herald Tribune
38. Buenos Aires Herald
39. Buenos Aires Herald
40. Latest News - Radio Netherlands Worldwide - English
41. Argentine economy minister resigns - International Herald Tribune
42. Buenos Aires Herald
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