Argentina's Major Power Shift: State Sells Transener Stake

Argentina will sell its 51% stake in state-owned power firm Transener. This aligns with the libertarian government's strategy to reduce state involvement and boost private sector roles. Amid the country's severe economic crisis, inflation rates are predicted to decrease but economic challenges persist.

Argentina is poised to sell its entire 51% stake in Transener, the nation's leading high voltage power transmission company. This move, announced by energy and mining government coordination secretary Daniel Gonzalez, reflects the government's strategy to scale back state involvement in strategic sectors, promoting private participation.

Transener, boasting a transmission network covering approximately 12,400 kilometers, represents a significant component of Argentina's infrastructure. This sale is pivotal for President Javier Milei's administration, which is steering towards reducing the state's entrepreneurial role amid an economic crisis.

The libertarian government aims to slash inflation, currently near triple digits, down from a previous high of almost 300%. Despite these efforts, economic growth has lagged, and poverty levels have skyrocketed, exceeding 50%, alongside a reduction in public expenditures.

(With inputs from agencies.)