The International Monetary Fund (IMF) intervention in Argentina in the years that preceded the country’s 2001 default became the object of various posthumous analyses that raised the question of whether its programme, rather than helping, contributed to pushing the Latin American economy over the edge.
All involved, Argentines in particular, hope that the IMF’s new, record-breaking $57bn bailout programme for the country will be different. As things stand, the odds suggest otherwise. The acceleration of the austerity measures already planned by Buenos Aires is risky: the IMF is imposing a fiscal adjustment of 2.8% in 2019 – something the country will struggle to absorb as it will be emerging from recession and dealing with a potentially slow recovery. Next year is also an election year.
