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The Argentine government failed to pay about 500 million US dollars of interest on private enterprises such as Fidelity and Bellaide Group on the 22nd of this month. The authorities are studying different debt restructuring plans.According to Reuters, Argentine Economic Minister Martínguzmán said that the solution proposed by creditors has been received and refers to a step ahead of the right direction.However, Argentina's creditors not only include private enterprises, but the country also owes IMF huge debt.With the spread of new crown pneumonia in South America, its economic blow has also increased the possibility of breach of contract again.
Argentina's export of grains and beef at the end of the 19th century became a large agricultural country in South America. Its economic strength can be compared with imperialists such as Britain, France, and Germany.But the good times are not very good. Two World War has not only completely reversed Argentina's National Games, but also made it the country with the largest number of defaults in the world's debt.
Argentina has been breach of contract nine times.
The country has nine defaults from 1827 to the present, and the record of debt default can be described as the "wonderful" in the history of modern international finance.For example, after the former President Pelon was driven down in 1955, the country's economy was turbulent, and it was difficult to keep up with the timetable for repaying debts to indirectly given the establishment of the "Paris Club" to help the country reorganize debts.During the "Dirty War" in 1982, the military dictatorship must also raise funds from Britain and the United States due to poor economic management, and used for infrastructure and state -owned industries.By 46 billion U.S. dollars, but later encountered the Federal Reserve's decision to raise interest rates to 20%to control inflation, so that the country must be replaced by the country.By the 21st century, the National Games in Argentina had not improved. After four consecutive years of economic recession, the country's GDP had been reduced by two -thirds in 2001, forcing the authorities to announce the breach of contract in the same year.It happened again.
The current financial status of Argentina also undertakes the past slump.Before the popularity of new crown pneumonia, Argentina had fallen into a decline for two consecutive years. At present, it owed about 324 billion US dollars in debt, accounting for 90%of its GDP.Although this ratio is not as good as the European Union's "debt country" Greece and Italy, it is enough to make Argentina request private creditors for three years in the past month and 62%of interest.According to the evaluation of the IMF March, Argentina's debt level is not only "difficult to sustain", but its export industry cannot earn enough foreign exchange to maintain the stability of sufficient foreign exchange reserves and financial systems.
IMF expects that Argentina's GDP this year will shrink 5.7%, but from the perspective of the increase in the South American epidemic, I believe the prediction is too optimistic.However, even if there is no new crown pneumonia, the economic and trade exchanges between countries have not been affected, and it is not necessarily that Argentina has gone out of the debt trap that has gone back.
Even if no one knows how to end this century -old dilemma, one of the main points is to break the political law behind the "bond to raise debts."Since World War II, the country's economic policy has been swaying between Belonism and neo -liberalism for many years. Whenever the country has fallen into a wealth, the lending agreement between IMF, World Bank and international investors will always be based on the "Washington Consensus".The concept of Argentina is required to implement a tightening policy to reduce government expenditure, but this enables grassroots people to be the first to become a victim of a tightening policy.At the same time, the austerity policy will make the votes that accounted for the majority of the grassroots, and make politicians who respect the "Belonism" policy.After the country fell into a debt crisis in the year, last year, the left -wing candidate Albertofernandez was selected. As a result, the people's living conditions not only did not improve, but continued to refresh the record of national debt defaults.
