Argentina is once again dealing with the prospect of a sovereign debt restructuring to avoid what would be its ninth default. As the economy falters, the new Perónist government is insisting on expansionary fiscal measures. These could clash with its international obligations with investors as well as with the International Monetary Fund (IMF), to which it owes $44bn in rescue funds.
There are many actors involved, including Pope Francis, an Argentinian, who sponsored informal talks in Rome between Argentina’s finance minister, Martín Guzmán, and the IMF’s new managing director, Kristalina Georgieva. Bondholders are watching, as are the country’s banks.
