After a four-year hiatus, Argentina resumed her predilection for socialist governments by swearing Alberto Fernández into office in December 2019. Like many Argentine presidents before him, he faces the huge challenge of steering the Argentine economy out of a self-inflicted crisis.

Mauricio Macri, the outgoing conservative president, failed to live up to his promise of poverty reduction and liberalization. Rather than tackling the root causes head on, he adopted a gradualist approach leaving untouched Argentina’s expansive welfare state, which devours three-quarters of the annual government budget.

Inflation and unemployment picked up as market confidence in Macri’s economic plan plummeted. The International Monetary Fund (IMF) agreed to bail out Argentina with a $57 billion loan, the largest in IMF history. Now Argentina is struggling to honor her financial commitments and the menace of default looms large yet again.

Backgrounder’s Content

What is the state of Argentina’s economy? How much outstanding debt does Argentina have? What is her credit rating? Who will lead debt negotiations? What have creditors said? Is the new government willing to repay Argentina’s IMF loan? What is the incoming administration’s plan to turn the economy around? What have been the first economic measures?

Previous Coverage

“Incrementalism Has Failed Argentina,” by Daniel Duarte.

“Argentina’s Taxes the Fastest Rising in Latin America,” by Paz Gómez.

“Argentina Defaults on Gas Payments, Foments Standoff with Bolivia,” by Paz Gómez.

“Warning: Argentine Default Imminent,” by Fergus Hodgson.

Download the PDF: “Argentine Default: Here We Go Again” (four pages)