Argentina has been facing a financial crisis for a long period of time. However, the recent series of events have worsened the scenarios. Peso lost a fourth of its value while the rates of interest were hiked by the Central Bank from 32.25 to 40%. This has resulted in a severe financial crisis and Mauricio Macri, the President, is looking forward to getting financial assistance from the IMF or International Monetary Fund. He is hopeful that the assistance will strengthen the growth of the country and overcome the negative impacts of the past.
Nicolas Dujovne, the Finance Minister of Argentina is about to visit the Washington office of IMF to seek financial aid. According to some of the reports, the government will ask for £22 billion or $30 billion to overcome the crisis. However, no statement has been released on behalf of the government in this regard.
It has been 12 years since Argentina had dissolved the association with IMF and 17 years since the country had defaulted in paying the debts.
However, the President of Argentina had a telephonic conversation with the Director of IMF, Christine Lagarde. She has confirmed that she will design an agreement to help the country come out of the financial crisis.
The President of the country is keeping his hopes high regarding the financial help. According to him, the hiked oil prices and stipulated rise in the US rates of interest are causing trouble for Argentina. He had stated that the assistance from the IMF will help the country move forward and get over the concerns it had faced in the past.
Though Argentina had closed the loan in 2006 by paying the entire sum, it didn’t continue with the tie with the IMF. People believe that the stiff rules and policies had led to the economic crisis in the country during 2001-02, which had forced the millions of people into poverty.