Javier Milei’s election as president of Argentina has raised concerns among the international financial market about the need for urgent and profound reforms. While Milei’s first speech as president-elect was characterized by unexpected moderation, the financial market believes that the plan libertarian is “bold” and can threaten financial stability.
Jaime Reusche, Vice President – Senior Credit Officer de Moody’s Investors Service stated that “Argentina’s elected president, Javier Milei, faces extreme challenges with highly uncertain outcomes. While Milei proposed strong measures during his campaign that could eventually address the stark imbalances that currently paralyze Argentina’s economic activity, distort relative prices, and reduce purchasing power, these measures, if enacted as described, would cause an abrupt and deep economic adjustment, collapsing domestic demand and threatening financial stability.”
Investment banking JP Morgan also placed its magnifying glass on the risks of implementing the measures announced by Javier Milei during the campaign. They warned that “governance risks loom given the lack of party structure and also the distribution of power in Congress after the elections generals. President Milei will need to negotiate with other parties, in particular with the PRO”.
According to a report for its clients signed by economists Diego Pereira, Lucila Barbeito and Gorka Lalaguna from JP Morgan bank: “The main pillars on which Milei built its narrative throughout the campaign have been dollarization and the reduction of the size of the State in the economy. It is true that