IMF’s Reputation On the Line In Argentina

When the IMF completed its third review of Argentina’s economy in early April, managing director Christine Lagarde boasted that the government policies linked to the country’s record $56bn bailout from the fund were “bearing fruit,” the Financial Times reported. Less than a month later, amid darkening political prospects for incumbent president Mauricio Macri, the country’s currency crisis reignited and bond yields spiked, threatening not only the IMF’s Argentina programme but its reputation and that of its leader.  Argentine assets have stabilised somewhat in recent weeks, with the country’s central bank now allowed to use IMF resources to intervene in the peso. But many analysts and investors are concerned that the programme is fraying and could collapse if the populist opposition, led by former leftist president Cristina Fernández de Kirchner, wins the presidential election in October. Read more

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