Argentina Seeks Help, Not Rescue

Turning to the IMF won’t be popular, but failure to reform is not an option.

|May 10, 2018

By Allison Fedirka

It seems to be a turbulent May for Argentina. On May 4, the country’s central bank raised interest rates to 40 percent, the third hike since April 27, when rates were just 27.25 percent. Then Argentina’s currency, the peso, continued to decline in value, reaching a historic low of 23 pesos to the U.S. dollar. This culminated May 8, when President Mauricio Macri announced that the government would seek a $30 billion loan from the International Monetary Fund to prevent an economic crash.

These events – particularly the request for IMF assistance – have revived memories of Argentina’s 2001 economic crisis. Argentina and the IMF have a complicated relationship that, for the better part of this century, has been combative. Many Argentines blame the IMF for the 2001 crisis and resent the institution for its insufficient response to it. Argentina was frozen out of international financial markets for more than a decade. Needless to say, these were times

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