Argentina’s Economy Is Near Crisis. Will a Bailout Be Big Enough, Fast Enough?

Wall Street Journal, May 17, 2018
by Josh Zumbrun

A fresh test of the IMF’s rescue chops is in the works as the Argentine peso and Argentina stock markets fall.

But a number of big questions are yet to be resolved, and they could rattle financial markets depending on how they’re answered.

How we got to this point: Argentina was on course to run a large fiscal deficit this year, and Argentina owes a large amount of its debt in U.S. dollars, which are becoming very expensive. Negotiations for an Argentine rescue from the International Monetary Fund are picking up, with the IMF’s board expected on Friday to formally deputize the IMF’s staff to negotiate the details of the rescue.

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