WHY DID SILVA HERZOG GO?
The sudden resignation of Jesus Silva Herzog, the Mexican Minister of Finance, on June 17, and his replacement by Gustavo Petricioli, came just a week after it was rumoured that a rescue package of $6 billion would provide a breathing space for the beleagured Mexican economy.
Officially it was announced that the President had decided to strengthen his economic team with the appointment of Petricioli but this was followed by a statement by Silva Herzog. He had, he said: "resigned voluntarily and irrevocably for personal reasons.' In the Mexican political system, officially ministers resign, although practically they are fired. In this instance the government appeared to be stressing the fact that the resignation had been forced; Silva Herzog contradicted this, maintaining that he had gone voluntarily.
The timing of his resignation when an IMF agreement was close, some argued, implied that the president was rejecting the deal brought by Silva Herzog, and wanted a better one--or would call a moratorium. Others claimed Silva Herzog was not happy with the deal being offered by the IMF and wanted to call a unilateral moratorium; so the President and economic cabinet, who wished to adopt a more conciliatory policy, were forced to remove him.