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Goldman Sachs Believe Appointment Of New Finance Minister Is Market Positive

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  • Goldman Sachs believe that the appointment of José Luis Arista as finance minister may be perceived as a market positive event. They note that he not only espouses business-friendly views, but also has some political influence of his own to steer the government’s agenda in congress, including the pension reform bill and new taxes. They believe that Mr. Arista is likely to face pushback from lawmakers who intend to approve further pension fund withdrawals.
  • They also note that, despite his market-friendly and technocratic credentials, the outgoing finance minister Alex Contreras’ limited political experience was perceived as a handicap for an administration facing weak governability conditions, implementation challenges, and an unreliable base of support in congress. According to recent polls, Mr. Contreras had a high disapproval rating of 63pt.

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