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The IMF Is Fueling an Argentine Crisis – Again

In little more than three years, Argentine President Mauricio Macri's government has already signed two agreements with the International Monetary Fund. And recent developments suggest that the country’s long and troubled history with the Fund may be about to repeat itself.

BUENOS AIRES – Argentina first needed to borrow from the International Monetary Fund back in 1958. In the six decades since, the country has signed 22 agreements with the Fund. Most were subsequently derailed or ended in failure.

Despite his pro-business credentials, Argentina’s current president, Mauricio Macri, has joined this parade of disappointment. In little more than three years, his government has signed two agreements with the IMF. And recent developments suggest that Argentina’s troubled history with the Fund may be about to repeat itself.

The latest chapter began in June 2018, when the country was running fiscal and current-account deficits equivalent to a combined 11% of GDP. Investors became wary of Argentine bonds, forcing the Macri government to rush to the Fund for help.

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