Two Years After Handing It The Biggest Ever Bailout Loan, IMF Finds Argentina Debt Levels Are “Unsustainable
Long ago Argentina adopted Peronism, which is a political philosophy that actually celebrates crony capitalism. It has suffered ever since. There was a time before Peronism when Argentina was wealthier per capita than the USA.
Back in the summer of 2018, when the IMF handed Argentina an unprecedented $56 billion bailout loan, the largest in IMF history, some warned that this is a case of deja vu similar to the 2001/2002 precedent when Argentina eventually defaulted on its foreign creditors, while humiliating the IMF which had signed off on Argentina’s economic policies that ended up in bankruptcy court. The IMF, however, was confident that this time would be different, and rushed – under now-ECB head Christine Lagarde – to hand to Argentina the greatest amount of money the IMF had ever disbursed to a struggling nation.