To understand how we’ve arrived at the umpteenth financial upheaval that began around a year ago in Rio de la Plata, Argentina, we must explore crucial events that took place between August and October of 2018, specifically focussing on the role of the IMF in the crisis.
On the 20th June, 2018, the Argentine government and the IMG signed the biggest stand-by agreement in the history of the country’s dealings with the financial institution. In exchange for a rescue deal of 50,000 million dollars, the Argentine government committed to achieving three different types of goals: the first, a fiscal goal to drastically reduce the public deficit, the second, a goal relating to inflation, and finally a goal of maximum and minimum fluctuation in the value of the national currency.
However, the efforts of the authorities in Argentina were so poor that in August of 2018, the country failed the first technical inspection of the IMF, something that has never occurred in Argentine history.
