It has been a tough few weeks for Argentina. On August 29, president Mauricio Macri requested the early release of a $50bn bailout loan from the International Monetary Fund, sparking a collapse in international investor confidence. The peso plunged to a record low against the dollar, taking its devaluation to more than 50% this year. The central bank raised its interest rate to 60%.
While the crisis has come to a head in Latin America’s third largest economy, its banking sector has been under pressure for some time. In 2017, the industry posted the smallest pre-tax profits in five years.
