After a long period of economic restrictions and the country´s isolation from important international markets, Argentina has changed its paradigms by electing a new president with a different political view, who has already implemented new policies in order to stabilize the FX market, liberate imports and exports, reintroduce the country to international markets and establish clear rules and incentives to private investors. The conclusions of our report are the following:
- The new government has assumed the commitment to establish an environment that promotes private investment.
- Strong measures were implemented in order to allow the peso to freely float in the market, dismantling severe foreign currency controls introduced by the prior government.
- New Energy policies have been adopted in order to diversify the energy matrix and to encourage the development of renewables energies, as well as to establish clear rules for investors. Electric tariffs were updated according to market prices, although the price of locally produced crude oil is kept above the international market (almost twice as much) given the country’s current dependence on fossil fuels while also taking in consideration the country´s potential in this industry.
- The new government appointed well-known professionals from the private sector to join the Public administration.
- Export and Import duties on some goods were significantly reduced and the mechanisms to import/export goods were simplified, as part of the government´s policy of reintroducing the country to the most important international markets.
- The government has assumed the commitment to renegotiate and settle the claims filed by the “Holdouts” of defaulted sovereign debt, in order to allow the country to borrow money in the international capital markets at reasonable interest rates. This could be appreciated in the recent positive participation the President had in the Davos World Economic Forum.