Latin America

Fernández’s post-IMF-deal economic plans are already teetering

Argentina had to close its doors to imports this week to meet foreign currency accumulation requirements

Argentinian Alberto Fernández and Economy Minister Martín Guzmán. Photo: Esteban Osorio/Pacific Press/Alamy
Argentinian President Alberto Fernández and Economy Minister Martín Guzmán. Photo: Esteban Osorio/Pacific Press/Alamy

The International Monetary Fund (IMF) is willing to be flexible with Argentina regarding the macroeconomic targets that the sides agreed during their debt-restructuring negotiations. The fund knows that responsibility for the original failed loan lies as much with it as with Argentina, so publicly admitting to a failed restructuring would hurt the credibility of both sides yet again.

That means that higher-than-expected inflation, divergence in growth targets, or an uptick in public spending could all be tolerated.

But it was paramount that the country showed progress on one metric: the accumulation of foreign currency reserves, which Argentina needs to...

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