By affirming that Argentina's public-sector debt is unsustainable, the International Monetary Fund has taken a critical step toward resolving the country's long-running crisis. Moving forward, one hopes that the Fund will realize its own role in the latest crisis and follow its own advice on when to pursue capital-market liberalization.
NEW YORK – Argentina has just passed a critical juncture with respect to its debt. The International Monetary Fund’s mission to the country has affirmed that the public-sector debt is unsustainable, as President Alberto Fernández and his minister of the economy, Martin Guzmán, a debt expert, have been pointing out. According to the IMF, “The primary surplus that would be needed to reduce public debt and gross financing needs to levels consistent with manageable rollover risk and satisfactory potential growth is not economically nor politically feasible.”
NEW YORK – Argentina has just passed a critical juncture with respect to its debt. The International Monetary Fund’s mission to the country has affirmed that the public-sector debt is unsustainable, as President Alberto Fernández and his minister of the economy, Martin Guzmán, a debt expert, have been pointing out. According to the IMF, “The primary surplus that would be needed to reduce public debt and gross financing needs to levels consistent with manageable rollover risk and satisfactory potential growth is not economically nor politically feasible.”