Argentina Faces Economic Crisis: Buenos Aires Times

Alberto Fernández, sworn in as president of Argentina, inherits enormous debt, recession, inflation, a 10 percent unemployment rate and 40 percent poverty rate, reports the Buenos Aires Times. The peso has lost two thirds of its value since 2018. The many challenges compound the hardship in paying external debt. Fernández promises to increase economic growth but offers no details, partly because he must deal with a diverse coalition government. “The search for equilibrium in maintaining unity of this alliance has come to fruition with the creation of a Cabinet that now represents almost all of the coalition's leanings,” reports the newspaper. The government is expected to renegotiate Argentina’s external debt held by private bondholders and the International Monetary Fund. The United States is the IMF's largest shareholder. One analyst anticipates currency controls and rapid approval of a budget. – YaleGlobal

Argentina Faces Economic Crisis: Buenos Aires Times

Argentina’s President Fernández assumes office, leading a coalition government and confronting high debt as well as high rates of inflation, unemployment and poverty
Friday, December 13, 2019

Read the article from Buenos Aires Times about Argentina’s new president confronting economic crisis.

External Debt by Creditor Type, billions US dollars Official $107; Banks $10 ; Other Private $168; 60% of GDP (forecast) 0

Rising: The IMF projects Argentina’s debt to reach $285 billion (Source: International Monetary Fund)

Read about Argentina’s economic crisis from the US Congressional Research Office:

“Argentina’s increasing reliance on external financing to fund its budget and current account deficits left it vulnerable to changes in the cost or availability of financing. Starting in late 2017, a number of factors began to create problems: the U.S. Federal Reserve (Fed) began raising interest rates, reducing investor interest in Argentine bonds; the Argentine central bank reset its inflation targets, raising questions about its independence and commitment to lower inflation; and the worst drought in Argentina in 50 years hurt commodity yields, significantly eroding agricultural export revenue.”

Buenos Aires Times
Related Links: 

Argentina on Its Own: Buenos Aires Times

Fernández's Rise in Argentina: Bloomberg

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