Argentina elected left-winger Alberto Fernndez as president on Sunday, with the Peronist triumphing over centre-right incumbent Mauricio Macri. Macri's term was dogged by an inflation crisis, which ended in a $56bn International Monetary Fund (IMF) bailout.
Macri's "business-friendly" presidency ended in disaster, says The Economist, but the Peronists who preceded him had an "equally calamitous" record. Cristina Fernndez de Kirchner, Argentina's deeply divisive, economically illiterate former leader, is the new vice-president. It remains to be seen how much influence she wields.
The new president inherits a government "saddled with more than $100bn in foreign debt", say Santiago Prez and Ryan Dube in The Wall Street Journal. The IMF rescue deal is conditional on the austerity measures that "Fernndez campaigned against". Fernndez has promised to end the crisis but has no access to external financing, says Benjamin Gedan of the Wilson Center. "Populism without money is impossible." But almost half of the IMF's current loans are thought to be owed by Argentina. So a period of hardball negotiating and debt restructuring seems inevitable.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
That said, "broader Latin American markets have largely shrugged off" the drama, says William Watts on MarketWatch. Argentina's stocks make up less than 2% of the regional benchmark, which is weighted towards Brazil and Mexico.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
