Argentina seeks IMF credit line
11 May, 2018
Argentina opened talks with the IMF last Tuesday to seek a financial aid package, 17 years after the country defaulted on its debt and 12 years after cutting ties with the fund. President Mauricio Macri (pictured) described his decision to ask a line of credit as a preventative measure. After the country's currency fell 4% compared to the US dollar, Macri said in a televised speech he had held his first conversation with IMF chief Christine Lagarde but did not say how big a line of credit Argentina is seeking. He justified the decision saying that Argentina is among the countries of the world that are most dependent on foreign financing. Lagarde herself welcomed Argentina's step towards the fund, promising to help in strengthening the country's economy in the short term.
In January 2006, Argentina paid down its last loan to the IMF and severed relations with the fund, refusing even to allow the regular annual review of economic conditions conducted for all member countries for the next 10 years. The loans at the time were needed after the country suffered an economic crisis in 2001 that sparked the downfall of four presidents and default on $100bn in foreign debt. But Argentines objected to the strict conditions imposed by the IMF in exchange for the loan.