Argentina joined the International Monetary Fund (IMF) on September 20, 1956 [1] and has since participated in 21 IMF Arrangements. [2] The first Stand-By Arrangement (SBA) began on December 2, 1958, and the most recent Stand-By Arrangement began on June 20, 2018, and will expire on June 19, 2021. [3] The most recent arrangement approved Argentina to borrow SDR 40,714.00 million, of which Argentina has borrowed SDR 31,913.71 million [4] as of December 10, 2019. Over the past 63 years, Argentina has frequently used the resources of the IMF and holds the record for the largest loan distributed, reaching nearly $57 billion in 2018. [5] However, in 2006 under the leadership of Néstor Kirchner, Argentina was able to pay off its debts, thus escaping Article IV IMF surveillance. In 2016 under the leadership of Mauricio Macri relations between the IMF and Argentina were reestablished [5] due to the continuous decline of the country's GDP, leading to the 2018 arrangement.
November 30 marks the beginning of the 2001 economic crisis in Argentina [6] caused by the rising fear at how rapidly the Argentinian peso was being devalued. This crisis was caused in part by the extensive borrowing Argentina implemented during the presidency of Carlos Menem, and the governments dwindling tax revenue. [7] On December 5, 2001, the IMF made an announcement that they would no longer provide aid due to Argentina's inability to meet the conditionality set by the IMF to receive loans. President Adolfo Rodríguez Saá resigned shortly after the announcement of Argentina's default. [6]
The 2018 Arrangement allowed Argentina the option to immediately purchase US$15 billion (SDR 10,614 billion) while the remainder of the funds would be disbursed at the discretion of the Executive Board's quarterly review throughout the three year arrangement period. [8] As of 2018, Argentina is ranked the 24th largest economy with a GDP of US$518,475 million, [9] however, the GDP has continued to decline throughout the Macri presidency. [10] The goals of the 2018 Stand-By Arrangement are "to strengthen the country’s economy by restoring market confidence via a consistent macroeconomic program that lessens financing needs, puts Argentina’s public debt on a firm downward trajectory, and strengthens the plan to reduce inflation by setting more realistic inflation targets and reinforcing the independence of the central bank [11] ". Furthermore, the goal of the Arrangement is intended to bolster social spending and continue on the trajectory of spending for healthcare that is currently implemented. [12]
As of October 27, 2019, Alberto Fernández won the presidency in the general election (by 48.1% of the vote) against Mauricio Macri among others. Fernández's presidential term begins December 10, 2019. [13] In a 2019 press briefing with the IMF, it is stated that Alberto Fernández "hopes the IMF will help Argentina pay down its debt". [14] Many account Fernández's victory to the economic failures of his predecessor Mauricio Macri [15] and the fear that Argentina may default on their 2018 SBA as they did in 2001 after mass economic decline within their economy. [16] As of 2019 in Argentina, 25.4% of households live under the poverty line and 35.4% of the general population is living in poverty. [17] Recent telephone communication between the IMF Managing Director, Kristalina Georgieva, and president-elect Alberto Fernández indicate that both parties hope to “pursue an open dialogue for the benefit of the Argentinian people”. [16]
On November 19, 2023, Javier Milei succeeded in defeating Sergio Massa to win the presidency of Argentina. Upon receiving news of his victory, Millet promised drastic changes to the nations economic policy. [18] In part because of the Covid-19 pandemic, the Argentina economy had inflation of over 140% in the year prior to the election. The BBC reported that this painful economic position led to the election of Milei, who they described as a 'far right outsider' . [19] During a speech to the World Economic Forum in 2024, Melei argued that the economic challenges of Argentina and the broader western world were due to 'radical feminism', 'Neo-Marxism', and movement away from Neo-liberalism. [20]
6 months into Javier Milei's presidency, Argentina's economic position has yet to improve. The inflation in Argentina rose heights of 250% in December 2023, whilst the annual percent change in GDP growth has fallen to -2.8%. [21] To avoid further economic troubles, Melei and the IMF struck a deal that would allow for US$44 billion dollars of funds to go the country. This deal helps keep the Argentina government solvent, but it will only last for 30 months. Upon breaking the news about this deal, the IMF reported there are deep seated challenges in the Argentinian economy holding the country back from stable economic growth. [22] On June 12, 2024 Melei successfully pushed through 2 liberal economic reform bills through the senate, in an attempt to draw in foreign investment. [23] Foreign investment in Argentina has been low for the last decade, in part because of low confidence in the Argentina peso . [24] Argentina has a debt to GDP ratio of 80%, and owes more to the IMF than any other nation. [25]
The economic history of Argentina is one of the most studied, owing to the "Argentine paradox". As a country, it had achieved advanced development in the early 20th century but experienced a reversal relative to other developed economies, which inspired an enormous wealth of literature and diverse analysis on the causes of this relative decline. Since independence from Spain in 1816, the country has defaulted on its debt nine times. Inflation has often risen to the double digits, even as high as 5,000%, resulting in several large currency devaluations.
The politics of Argentina take place in the framework of what the Constitution defines as a federal presidential representative democratic republic, where the President of Argentina is both Head of State and Head of Government. Legislative power is vested in the two chambers of the Argentine National Congress. The Judiciary is independent, as are the Executive and the Legislature. Elections take place regularly on a multi-party system.
Alberto Ángel Fernández is an Argentine politician, lawyer, and academic who is the President of the Justicialist Party since 2021. He was previously the President of Argentina from 2019 to 2023. He was also the Chief of the Cabinet of Ministers from 2003 to 2008. His tenure as Cabinet Chief remains the longest since the post was created in 1994.
The National Institute of Statistics and Censuses is an Argentine decentralized public body that operates within the Ministry of Economy, which exercises the direction of all official statistical activities carried out in the country.
Republican Proposal is a right-wing political party in Argentina. It is usually referred to by its abbreviation, PRO. PRO was formed as an electoral alliance in 2005, but was transformed into a national party in 2010. It is the major component of the Juntos por el Cambio coalition, and its leader is former Argentine president Mauricio Macri, who is the party's president since May 2024.
Alfonso Prat-Gay is an Argentine economist and politician. Following the election of Mauricio Macri to the presidency on 2015, he became Minister of Economy.
The economy of Argentina is the second-largest national economy in South America, behind Brazil. Argentina is a developing country with a highly literate population, an export-oriented agricultural sector, and a diversified industrial base.
Relations between Argentina and Israel began shortly after the Israeli Declaration of Independence in 1948, with the countries establishing diplomatic relations on 31 May 1949.
The 2018–present Argentine monetary crisis is an ongoing severe devaluation of the Argentine peso, caused by high inflation and steep fall in the perceived value of the currency at the local level as it continually lost purchasing power, along with other domestic and international factors. As a result, the presidency of Mauricio Macri requested a loan from the International Monetary Fund.
Juntos por el Cambio is a political coalition in Argentina. A liberal coalition, it was created in 2015 as Cambiemos, and renamed in 2019. It is composed of Republican Proposal, Radical Civic Union, Civic Coalition ARI and United Republicans.
Luis Andrés Caputo is an Argentine economist who is the current Minister of Economy under Javier Milei's presidency, having assumed office on December 10, 2023. He previously served as Minister of Public Finances from 2017 to 2018 and President of the Central Bank of Argentina in 2018.
Poland was one of the founding members of the International Monetary Fund (IMF) in 1945. Under pressure from the Soviet Union, the country withdrew in 1950, believing that the organization had become a tool for the United States. Poland rejoined the IMF in 1986, following the end of martial law in Poland (1981–1983) and the withdrawal of the US veto against Polish membership.
Menemism is a term that refers to the policies implemented in Argentina by Carlos Menem, president of the country from 1989 to 1999. Like peronism, menemism is complex, being most usually defined as populist rhetoric combined with neoliberal policies.
Greece is one of the original members of the International Monetary Fund, joining it on December 27, 1945. It has a quota of 2,428.90 million SDRs and 25,754 votes, 0.51% of the total IMF quota and votes. Greece has been represented on the IMF Board of Governors by Minister of Finance Christos Staikouras since 2019. Greece elects an Executive Director on the fund's Executive Board with Albania, Italy, Malta, Portugal and San Marino. Michail Psalidopoulos is the elected alternate director. Greece has signed two loan agreements with the IMF: a Stand-By Arrangement from 2010 to 2012 and an agreement under the Extended Fund Facility from 2012 to 2016, borrowing a total of 27,766.3 million SDR. Greece owes the IMF 6,735.64 million SDR, and is the fund's third-largest borrower. In 2018, the fund began conducting annual post-program monitoring of Greece in addition to its annual Article IV consultation.
Bosnia and Herzegovina and the International Monetary Fund are the relations between the country of Bosnia and Herzegovina and the International Monetary Fund (IMF). Bosnia and Herzegovina declared independence from the state formerly known as Yugoslavia in 1992 and joined the International Monetary Fund (IMF) on December 14, 1992.
Martín Maximiliano Guzmán is an Argentine economist, who served as Minister of Economy in the cabinet of President Alberto Fernández from December 2019 to July 2022.
Miguel Ángel Pesce is an Argentine economist who served as president of the Central Bank of Argentina in the Alberto Fernández administration, from 2019 to 2023. Pesce previously served as vice president of the Central Bank from 2004 to 2015, during the successive presidencies of Néstor Kirchner and Cristina Fernández de Kirchner.
General elections were held in Argentina on 22 October 2023 to elect the president, vice president, members of the National Congress, and the governors of most provinces. As no presidential candidate won a majority in the first round, a runoff was held on 19 November, in which Javier Milei defeated Sergio Massa to become President of Argentina. Incumbent president Alberto Fernández and incumbent vice president and former president Cristina Fernández de Kirchner, despite both being eligible for a second, consecutive term, did not seek re-election.
The Presidency of Alberto Fernández began on 10 December 2019, when Alberto Fernández was sworn into office to a four-year term as President of Argentina. Fernández took office alongside vice president Cristina Fernández de Kirchner following the Frente de Todos coalition's victory in the 2019 general election, with 48.24% of the vote against incumbent president Mauricio Macri's 40.28%. Fernández's victory represented the first time in Argentina's history that an incumbent president had been defeated in a re-election bid. In 2023, he was later succeeded by Javier Milei.
The presidency of Javier Milei began on 10 December 2023, when Javier Milei was sworn into office to a four-year term as the president of Argentina. Milei took office alongside vice president Victoria Villarruel following the La Libertad Avanza victory in the 2023 Argentine general election, with 55.65% of the vote in the second round against former economy minister Sergio Massa's 44.35%. Milei was elected with the highest total vote ever in Argentina and the highest percentage since 1973, amid the still ongoing 2018 Argentine monetary crisis.