The IMF is fuelling an Argentine crisis - again April 20 2019 01:04 AM

[Judi Lynn]

Argentinian Economy Minister Nicolas Dujovne (centre), talks during a press conference
next to Argentinian Production and Work Minister, Dante Sica (left), and Argentinian
Health and Social Development Minister, Carolina Stanley. President Mauricio Macri
announced anti-inflationary measures to reactivate the economy in recession-hit
Argentina.

By Hector R Torres Buenos /Aires

Argentina first needed to borrow from the International Monetary Fund back in 1958. In the six decades since, the country has signed 22 agreements with the Fund. Most were subsequently derailed or ended in failure.

Despite his pro-business credentials, Argentina’s current president, Mauricio Macri, has joined this parade of disappointment. In little more than three years, his government has signed two agreements with the IMF. And recent developments suggest that Argentina’s troubled history with the Fund may be about to repeat itself.

The latest chapter began in June 2018, when the country was running fiscal and current-account deficits equivalent to a combined 11% of GDP. Investors became wary of Argentine bonds, forcing the Macri government to rush to the Fund for help.

With the strong backing of the United States, Argentina was soon given a $50 bn IMF loan to use over the next three years. The government pretended that this was just a “precautionary” programme: Argentina would keep the money in its back pocket to reassure private investors.

More:
https://www.gulf-times.com/story/629243/The-IMF-is-fuelling-an-Argentine-crisis-again

[Kurt V.]

1. It's a broken record. 1958. good grief