Luis Caputo Explained

Luis Caputo
Office:Minister of Economy
President:Javier Milei
Term Start:10 December 2023
Predecessor:Sergio Massa
Office2:Minister of Finance
President2:Mauricio Macri
Term Start2:10 January 2017
Term End2:14 June 2018[1]
Predecessor2:Alfonso Prat-Gay
Office1:President of the Central Bank of Argentina
In commission
Term Start1:14 June 2018
Term End1:25 September 2018
Predecessor1:Federico Sturzenegger
Successor1:Guido Sandleris
Birth Date:21 April 1965
Birth Place:Buenos Aires, Argentina
Party:Republican Proposal
Otherparty:Juntos por el Cambio
Alma Mater:University of Buenos Aires

Luis Andrés Caputo (born 21 April 1965) is an Argentine economist who is the current Minister of Economy under Javier Milei's presidency, having assumed office on December 10, 2023.[2] He previously served as Minister of Public Finances from 2017 to 2018 and President of the Central Bank of Argentina in 2018.[3] [4]

Early life and education

Caputo completed his primary and secondary studies at the catholic and bilingual La Salle College. He graduated with a degree in Economics from the University of Buenos Aires.

His cousin, Nicolás Caputo, is a construction industry entrepreneur close to Mauricio Macri.[5]

Academics

Caputo was a professor of economics and finance in the postgraduate course of the Pontifical Catholic University of Argentina.

Finances

Caputo served as Chief of Trading for Latin America at JP Morgan between 1994 and 1998, and he held the same position for Eastern Europe and Latin America at Deutsche Bank between 1998 and 2003. From then until 2008 he was chairman of the Argentine branch of Deutsche Bank.

Secretary and Minister of Finances

In December 2015 Caputo assumed the position of Secretary of Finances of the Macri's administration.

During his tenure he played a key role together with Alfonso Prat Gay in the negotiation with the hedge funds, where the country agreed to pay 9.352 million US dollars and Argentina returned to international capital markets and guaranteed external financing in a difficult context as a result of the default inherited from Cristina Fernández de Kirchner.[5]

On 26 December 2016, after the dismissal of Alfonso Prat-Gay by President Macri, the Ministry of Treasury and Public Finance was split in two, with Caputo being appointed Minister of Finance in January 2017.[6]

He continued to take on the task of ensuring the arrival of the necessary funds to face the fiscal deficit. His deep knowledge of international finance and direct contact with interlocutors on Wall Street are highlighted.[7]

President of Central Bank

On 14 June, Caputo became President of the BCRA. His main challenge was to contain inflation, results that Sturzenegger's administration did not achieve in 2018.[8] Caputo was in the midst of a context of mistrust in the economic program. He increased the interest rate from 20% and Argentine peso was devalued 40% in three months during its administration.[9]

He oversaw a dramatic reduction in BRCA debt in the form of LEBAC bills, a move considered to be an important achievement.[9]

Meanwhile, the BCRA's reserves in June were $45 billion and, upon announcing its resignation, it reached $49 billion (considering here the IMF's money inflow).[9]

He resigned on 25 September 2018 "for personal reasons", during a negotiation with the International Monetary Fund and internal policies, and was replaced by the Secretary of Economic Policy of the Ministry of Treasury, Guido Sandleris.[10] [11]

Argentine stocks and bonds fell after his departure from the Central Bank.[12]

Controversies

On 2017, a government branch of the Fiscal Ministry opened a judicial case accusing Caputo of embezzling money from a Social Security fund by paying fees of at least 540,000 AR$ to a company he had owned and directed until 2015, in lieu of services that were unnecessary.[13] [14] [15]

On 5 November 2017, the Paradise Papers, a set of confidential electronic documents relating to offshore investment, revealed that Caputo had managed at least two offshore wealth funds.[16] Neither the Cayman Islands–based Alto Global Fund nor its Miami-based parent company, Noctua Partners LLC, were listed in Caputo's financial disclosure statement, a statement that all public officials and candidates for office are required to make. He told Argentine members of the ICIJ team that "it was an investment fund for friends and family."

The funds, opened in 2009 and with over $100 million under management, remained under Caputo's management until December 2015, when Macri named him Finance Secretary, a post upgraded to Finance Minister in January 2017.

Other activities

External links

Notes and References

  1. News: UPDATE 1-Argentina's finance minister named head of central bank. Reuters. Editorial. Reuters. 14 June 2018.
  2. Web site: 2023-12-11 . Boletín Oficial República Argentina - Ministerio de Economía - Decreto 5/2023 . 2023-12-12 . www.boletinoficial.gob.ar.
  3. Web site: Le pidieron la renuncia a Alfonso Prat-Gay: dividen el ministerio y asumen Nicolás Dujovne y Luis Caputo . . December 26, 2016.
  4. News: Argentina's Central Bank President Resigns. Lewis Jeffrey T. and Dube Ryan. 2018-09-25. Wall Street Journal.
  5. Web site: Quién es Luis Caputo, el hombre que arregló con los buitres. Clarín. 26 December 2016. Clarín (Argentine newspaper).
  6. Web site: Luis Caputo juró como Ministro de Finanzas. 10 January 2017.
  7. Web site: Luis Caputo, el millonario amigo de los buitres - Un hombre del JP Morgan. 26 December 2016 . Página 12.
  8. News: Luis Caputo Replaces Sturzenegger as Argentina Cenbank President. Patrick Gillespie and Carolina Millan. Bloomberg.com. 14 June 2018. Bloomberg. 11 March 2019. https://web.archive.org/web/20180702062818/https://www.bloomberg.com/news/articles/2018-06-14/luis-caputo-replaces-sturzenegger-as-argentina-cenbank-president. 2 July 2018. dmy-all.
  9. News: Así fueron los 103 días de Luis Caputo en el Banco Central - LA NACION. La Nación.
  10. News: El acuerdo con el FMI precipitó la renuncia de Luis Caputo en el BCRA - LA NACION. La Nación.
  11. News: Argentina names Sandleris as new central bank chief. 25 September 2018. Reuters. 11 March 2019. https://web.archive.org/web/20181013172350/https://www.reuters.com/article/argentina-economy-sandleris/argentina-names-sandleris-as-new-central-bank-chief-statement-idUSE6N1PV04X. 13 October 2018. dmy-all.
  12. News: Caen las acciones y los bonos argentinos tras la salida de Luis Caputo - LA NACION. La Nación.
  13. Web site: Denuncian a Caputo por presuntas irregularidades con fondos de la ANSES - el Cronista.
  14. Web site: Denuncian que ANSES pagó comisiones por $540.000 al exfondo del ministro Luis Caputo. 5 January 2018.
  15. Web site: La UFISES denunció al ministro Luis Caputo por presuntas operaciones irregulares en el Fondo de Garantía de Sustentabilidad.
  16. Web site: Paradise Papers salpicó al Gobierno de Macri: el ministro Luis Caputo manejó inversiones en Islas Caimán. Peril. 5 November 2017.
  17. https://www.bcie.org/en/about-us/organizational-structure/governors/ Board of Governors
  18. http://siteresources.worldbank.org/BODINT/Resources/278027-1215526322295/MIGAGovernors.pdf Board of Governors