IMF Can’t Complete Argentina Review
The International Monetary Fund poured cold water on Argentina’s hopes for a much-needed $1.3-billion loan in December, saying it was unable to complete the needed review at this time. The move takes the recession-mired South American nation closer to committing the biggest sovereign debt default in history.
In a spartan statement, the international lender said that any cash for Argentina was unlikely soon, given an increasingly strained relationship with Buenos Aires.
The U.S. Treasury said only that it was “supportive” of continued contact between Argentina and the IMF.
Argentina, which owes $132billion in public debt, had been urging the IMF to complete an ongoing review of its economy to release the loan.
Meanwhile, Argentina’s largest unions called for a 24-hour general strike on Dec. 13 to protest new bank rules that have so far slowed a recent run on banks but sparked widespread confusion and outrage.
Many private economists believe the financial crisis will force Argentina either to devalue its currency, which has been pegged to the U.S. dollar, or formally adopt the dollar as the country’s official currency.
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