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Economic reforms needed as Argentina attempts to refinance debt

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Economic reforms needed as Argentina attempts to refinance debt

Tuesday 30 November 2021 – Vol.12 Ed.48.2

Commentary: Time is running out for Argentina and the IMF

By Pablo Guidotti in Buenos Aires

On 15 November, as his government faced a landslide defeat in mid-term elections, Argentina’s President Alberto Fernández announced that he would seek a new IMF programme to refinance $45bn in outstanding debt. But Buenos Aires’ announcements are not taken seriously by capital markets and, in the minds of investors, default and debt restructuring loom. Argentina’s government, at all levels, faces a huge credibility problem.

Read the full commentary on the website.

Video: Economic future of Latin America

Over the past year the Covid-19 pandemic has hit Latin America particularly hard. While a bounce-back of sorts is already being seen, disappointing economic performance in comparison to other emerging market regions has left doubt in many analysts’ minds. With a continuing struggle to obtain high-quality vaccines in the region, further waves of Covid-19 can’t be discounted and a reopening boom may not occur. Despite this, the region may still benefit from wider global trends, a rise in commodity prices, increased demand and a resumption of capital flows towards global markets.

Watch the full video on the website.

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