MercoPress. South Atlantic News Agency

New Economy minister: market friendly and an expert in debt negotiations

Lorenzino earned his credentials in the province of Buenos Aires

Hernán Lorenzino, 39, currently Finance Secretary and beginning next Saturday Argentina’s Minister of Economy is considered market friendly, has a vast experience in debt negotiations and accompanied President Cristina Fernandez in her recent trip to the G20 summit in France.

Lorenzino is currently involved in negotiations with the Club of Paris to solve Argentina’s pending debt (7 to 9 billion dollars depending on accountancy), was responsible for the second and successful pending debt swap (18.3 billion dollars) of Argentine defaulted bonds with holders and before that in 2003/04 helped clear the debt mess of the Buenos Aires province, the country richest.

The restructuring of the provincial debt gave him the credentials to continue advancing in spite of his age. This was further confirmed when the second swap of defaulted bonds. Lorenzino is convinced Argentina must return to the voluntary money markets.

Born in Puerto Madryn, he graduated as a solicitor in the University of La Plata and has a Magister in Economics from the Universidad Di Tella) and Public Finance and Administration also from La Plata.

Lorenzino became Finance Secretary in 2008 and before that had been Argentina’s financial delegate in Washington. His naming is seen as a victory for outgoing Minister Amado Boudou who next Saturday will be sworn in as Vice-president.

Lorenzino is the fourth Economy minister of the Cristina Fernandez era and truly the first with a strong technocrat profile. His job won’t be easy, besides the fact that Government House (and a Lady) feels it must run the economy, he will have to conclude negotiations with the Club of Paris, better relations with the IMF and tame the two digit inflation.

Some excerpts of recent statements: dealings with the IMF, “relation will circumscribe to technical issues, exchange of information and our participation in the Fund’s board. I don’t see anything changing”.

On using international reserves to pay debts or shortcomings of the budget, Lorenzino said he “favours leaving all options open, when the moment comes the best option will be decided, as it has always been”.

On Moody’s negative opinion of Argentina banks: “I think it is grotesque, lack of professionalism. And might I add I believe they are on a dangerous path”.

Finally on the Bank of the South, “it’s a step forward in reaffirming Unasur as a regional block trying to set up a shield in defence of the crises”.