ARGENTINA: A Hotel Collapse & more – 31st Oct 2024

TRANSCRIPTION

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 31st of October twenty twenty-four. A quick summary of what's going down in Argentina.

We have to start with some unfortunate news, as a ten-story hotel in Villa Gesell, a coastal town in the Buenos Aires Province, collapsed on Tuesday the 29th. Authorities found the body of an elderly man in the rubble, while a woman was rescued and hospitalized. Several others are missing.

Preliminary reports suggest that the collapse may be linked to illegal modifications at the building’s rear. The builders who had been hired for unauthorized construction at the hotel were among the occupants. Four construction workers were detained, and two architects are under investigation. Federal support teams have joined the local efforts to clear debris and locate those still missing.

In more positive news, Argentina’s country risk dropped below 1,000 basis points for the first time since twenty nineteen. The decrease reflects stabilizing efforts in the economy, support from international lenders, and a favorable meeting between Luis Caputo, the Economy Minister, and Kristalina Georgieva, the chief of the International Monetary Fund (or IMF). Recent loans from the World Bank and the Inter-American Development Bank also boosted investor confidence.

Celebrating his recent recognition as Finance Minister of the Year by LatinFinance, Caputo announced from Washington that Argentina is in talks with the IMF for a new agreement, including potential fresh funding, though he cautioned that reaching a deal will take time.

Still in economic news, Reuters recently published a poll indicating that Argentina’s economy is expected to rebound in twenty twenty-five. Economic growth is forecasted at 3.5% for next year, with major contributions from energy, manufacturing, and services sectors as regulations ease and investments grow. However, challenges remain, including debt payments and limited reserves, which may make further fiscal adjustments difficult despite increasing exports and tax revenues.

Speaking of which, the government has taken control of the national mint, Casa de Moneda, and canceled its contracts for printing low-denomination bills. Officials said that printing low-value bills like the 1,000 and 2,000 pesos doesn’t make sense financially, especially with the rise of digital payments. Casa de Moneda has halted all currency printing, and affected workers will use their available vacation days.

Printing is not the only thing that has come to a halt. The government announced a new rule that eliminates the possibility of public workers giving public sector jobs to family members or friends. The new rule aims to boost fairness and transparency in public hiring by banning appointments based on family ties, political connections, or influence. Instead, all hiring will now be open to the public, overseen by independent evaluation committees.

These committees will produce public reports for each hiring process, and the Anti-Corruption Office will conduct audits to ensure everything is merit-based. Those caught breaking these rules can face penalties, from suspension to removal from their position.

Someone who was removed from their position, although for different reasons, is Diana Mondino, the Foreign Minister. President Milei fired her after she supported a UN resolution calling to end the US embargo on Cuba, aligning Argentina with more than 180 other countries and going against key allies, the US and Israel.

Mondino’s recent diplomatic moves, like calling the Malvinas Islands, Falklands and hinting at a possible shift on Argentina’s stance towards joining BRICS, had already stirred controversy. Her replacement, Gerardo Werthein, was previously ambassador to the US and is expected to strengthen ties with Milei’s preferred allies.

Next up, Argentina recently avoided being placed on the Financial Action Task Force’s gray list, a designation that flags countries needing stricter monitoring for money laundering risks. The Justice Ministry and Argentina’s Supreme Court played crucial roles, addressing concerns about judicial delays in financial crime cases.

On the topic of audits, the University of Buenos Aires, or UBA, is taking legal action against the government over plans to audit public universities through SIGEN, an executive-controlled audit agency. The UBA argues that SIGEN’s oversight is illegal since universities, which are autonomous, should only be audited by independent bodies overseen by Congress, not the executive branch.

While the UBA is open to audits, it insists these must follow legal channels, typically under the General National Audit Office.

A lot has changed this week from a legal standpoint. The government has also changed its refugee laws to bar individuals accused or convicted of serious crimes in other countries from obtaining refugee status. The new rule also extends to those involved in terrorism, human rights abuses, or any acts compromising global security. For instance, members of organizations like Hamas, recently designated as a terrorist group in Argentina, are now explicitly ineligible for refuge.

Another update on that note: Patricia Bullrich, the Security Minister, has publicly identified Hussein Ahmad Karaki as a high-ranking Hezbollah leader responsible for coordinating logistics in the nineteen ninety-two and nineteen ninety-four Buenos Aires bombings. Karaki allegedly operated across Latin America under various aliases and obtained Venezuelan documents in two thousand four under the name David Assi. Bullrich said that Karaki still poses a threat, with recent unsuccessful attacks reportedly linked to him across South America.

Authorities expect an Interpol red alert as the country collaborates with judicial authorities on this case.

In diplomatic news, over thirty embassies in Argentina issued a joint statement advocating for the protection of LGBTQIA+ rights amid rising hostility. Organized through the Equal Rights Coalition, the statement emphasizes the belief that inclusive societies are crucial for peace and prosperity. This declaration, supported by countries like the US, Germany, and Canada, contrasts with recent policy shifts under President Milei, whose administration dissolved the Women, Genders, and Diversity Ministry and anti-discrimination watchdog INADI.

Lithium is still a hot topic, and this week the French mining company Eramet SA decided to buy back the nearly 50% stake held by China’s Tsingshan Holding Group in their joint lithium project in Argentina, marking a rare retreat for Tsingshan from its expansion into lithium beyond its primary nickel business. The 700 million dollar deal gives Eramet full control over Eramine Sudamerica’s plant, which uses direct extraction technology to produce lithium carbonate, with a potential output of up to 75,000 tons annually. Eramet, supported by its major shareholder, the French government, views the move as bolstering France’s control over critical raw materials.

Also in France, the Argentine goalkeeper Emiliano 'Dibu' Martínez was named the world’s best goalkeeper for the second year in a row, receiving the Yashin Trophy at the Ballon d’Or ceremony in Paris. Despite boos from the French crowd, still remembering his role in the World Cup win, Martínez accepted the award with pride, expressing gratitude to his club Aston Villa and the Argentina national team. This makes Martínez the first goalkeeper to win the award twice.

For all the gamers out there, the Buenos Aires Herald news outlet published an article that covers the Argentine Video Game Expo, where local developers presented games inspired by Argentine culture and history. From traditional themes like mate to national myths and historical events such as the Malvinas War, Argentina is leading Latin America in game production, and you can learn a lot about the culture through these games.

Read the article with the link in the show notes!

As we enter November, keep in mind there’s a holiday coming up. The 20th of November marks National Sovereignty Day in honor of the Battle of Vuelta de Obligado in eighteen forty-five. This historic battle took place on the Paraná River, where Argentine forces fought against British and French fleets attempting to navigate inland without permission to control regional trade routes. Despite being outgunned, Argentina’s resistance became a symbol of national sovereignty and pride, celebrating the country’s efforts to defend its autonomy and territorial integrity.

This year, the bank holiday has been moved to Monday, the 18th, to encourage tourism.

Aaand that’s it for this week! Thank you for joining us!

We’re so thankful to our listeners who follow us on Spotify, Apple Podcasts, and other platforms, especially those who share the show with friends and family! If you’d like to pass along an episode by sending an MP3 through a messaging app, you can download any episode directly from our website at www.rorshok.com/argentina. You’ll also find the link in the show notes. Thank you!

¡Nos vemos la próxima semana!