ARGENTINA: Loan Peña & more – 27th Jun 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 27th of June twenty twenty-four. A quick summary of what's going down in Argentina.

The country is restless looking for Loan Peña, a five-year-old boy who went missing in the Corrientes province. For the past few days, news outlets have covered little else, but there are still more questions than answers. However, the media revealed that he was last seen on the 13th of June, picking oranges with family members in the rural town of 9 de Julio. Authorities initially treated the situation as a missing child case, but the investigation has now expanded to include allegations of child trafficking.

What’s more concerning is that suspicion has fallen on the local police chief, who is accused of misconduct, as well as five individuals who had lunch with Loan that day. Investigators believe the police chief may have deliberately wasted valuable time by failing to secure the area around Loan’s disappearance and even tampering with evidence. For example, investigators found a shoe a few kilometers away from the scene, but the search dogs couldn’t trace a scent from it.

The strongest theory right now is that Loan may have been abducted and taken across the border to Paraguay. Security Minister Patricia Bullrich traveled to Paraguay on Tuesday the 25th to bolster the search, even though Paguayan authorities denied evidence of his crossing. In addition, the national government issued an alert and a reward for information leading to Loan’s safe return.

Now, moving from Paraguay to Bolivia, as Argentina has signed an extended contract with Bolivia’s state-owned oil company YPFB to secure natural gas for August and September. Winter is finally here, with temperatures dropping as far as minus fourteen degrees Celsius (around seven degrees Fahrenheit) in some provinces this week. As a result, the country needs to secure four million cubic meters per day to supply the central and northern regions. Additionally, Argentina is boosting its supply with twenty-eight LNG carriers and has agreements with Chile and Brazil for more gas imports.

You may wonder: what happened with the pipeline project that was supposed to enhance the country’s gas capacity? The pipeline, which helps transport gas from the Vaca Muerta shale patch to the northern provinces, is expected to be completed by mid-September. The Development Bank of Latin America partly financed this project with a 540 million loan, and it should soon ensure gas supply and power generation for households.

Winter has arrived and so has the looming recession. The government’s austerity measures slashed spending, causing consumption and economic activity to nosedive. Official data shows a drop in GDP of almost three percent from the last quarter of twenty twenty-three and a five percent decline compared to the previous year.

The recession follows severe cuts to pensions, public sector wages, and infrastructure projects, alongside a significant peso devaluation and removal of price controls. But there’s a silver lining: despite the economic downturn, which saw rises in unemployment and declines in key sectors like construction and retail, the government achieved five consecutive monthly budget surpluses and reduced inflation. The International Monetary Fund forecasts potential stabilization, with expected economic growth in twenty twenty-five aided by the president’s legislative reforms aimed at deregulation and attracting foreign investment.

Speaking of the president, he was in Prague this week, sparking controversy by saying he might win a Nobel Prize for “rewriting economic theory” after allegedly rescuing Argentina from hyperinflation. Additionally, Milei accused opposition lawmakers of being “coup plotters” for delaying legislation, which he said negatively impacted the bond market and raised country risk.

The controversies didn’t end there. Amid his official meetings with Czech leaders, Jiri Schwarz, the founder of the Prague Liberal Institute, gave Milei an accolade that led to a dispute because the organization disassociated itself from the award. Apparently, Schwarz hasn’t been part of the Institute for years, so he had no right to organize the award ceremony in their name.

The president was not only in Prague, but also in Madrid, where he couldn’t help taking another shot at Pedro Sánchez, the Spanish Prime Minister. During his visit, Milei condemned socialism as a generator of poverty and inequality and accused Sánchez of failing to understand economics. The visit drew criticism from Spain’s government, which had previously urged Milei to respect Spanish institutions and people.

Last on his little Eurotour, Milei had a one-hour working meeting with German Chancellor Olaf Scholz, focusing on renewable energy and the trade deal between the EU and Mercosur, the South American bloc, among other topics. Scholz emphasized the importance of considering the social impact of Milei’s economic reforms, and asked him to “protect social cohesion.” They also agreed on the need to expedite the trade deal and discussed Argentina’s significant lithium reserves.

In other news, the Copa América twenty twenty-four has begun, and Argentina is off to a good start. If you’re unfamiliar with it, the Copa América is the premier international football tournament for national teams in South America, and one of the oldest continental football competitions. Plus, it has historically invited teams from the Confederation of North, Central America, and Caribbean Association Football.

This year, the tournament is taking place across the US, and Argentina opened their Copa América defense with a 2-0 win over Canada, thanks to goals from Julián Álvarez and Lautaro Martínez. On Tuesday the 25th, the team continued their strong start by securing a spot in the quarter-finals with a 1-0 victory over Chile. Lionel Messi became the most capped player in Copa América history, adding to the significance of Argentina’s campaign as the team aims for back-to-back titles.

The next match will take place on Saturday the 29th against Perú. Don’t expect to see Messi play, though: since the team has already qualified for the quarter-finals, coach Scaloni plans to try an alternative team.

While all eyes are on the tournament, one piece of news flew under the radar: Starting this week, the Ministry of Health has moved forward with deregulating private health insurance companies. This means that these companies can now set their own fees instead of following a fixed tariff schedule. Copayment amounts must be disclosed to members upon enrollment, with any changes communicated at least thirty days in advance.

The new regulation aims to increase competitiveness and transparency in the healthcare sector while exempting specific services like cervical and breast cancer treatments, preventive dentistry, and emergency care from copayments.

Moving on to environmental news, Diana Mondino, the Foreign Minister, signed the High Seas Treaty or BBNJ agreement. The UN Convention on the Law of the Sea adopted this treaty a year ago and aims to preserve and sustainably use marine biodiversity in areas beyond national jurisdiction. Once ratified, it will help establish Marine Protected Areas, including regions near Argentina’s Exclusive Economic Zone, which are often exploited by foreign fishing fleets.

On that note about biodiversity, the British newspaper The Guardian published an article on the reinvention of the Buenos Aires zoo. Formerly a traditional zoo in the middle of the city, it shifted to an ecopark, focusing on conservation instead of showcasing animals for profit. The park now maintains South America’s largest biobank while caring for injured wild animals from across the country. While some elderly legacy animals still reside there, the facility has rehomed over a thousand animals to sanctuaries worldwide.

To read the full piece, follow the link in the show notes!

As June comes to an end, you’ve hopefully enjoyed the two consecutive long weekends. There may not be another one for a while, but we do have an important holiday coming up. Tuesday, the 9th of July, marks Independence Day, the anniversary of Argentina’s declaration of independence from Spain in eighteen sixteen. This is not a movable holiday so all celebrations will be held on that Tuesday.

One last piece of advise before we go: if you’re in the central or northern regions of the country, stay vigilant against the dengue virus. Even though there’s been a recent ten-week decline in cases, the country has experienced a 300% year-on-year increase so far, with half a million cases and counting.

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

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¡Nos vemos la próxima semana!