BUENOS AIRES, April 7 — Argentina, which yesterday deferred payments of up to US$9.8 billion (RM42.67 billion) of its debt to 2021, has been battling a deep economic crisis since 2018.
More than 35 per cent of Argentinians live in poverty.
Here is a recap of the latest turmoil.
Currency collapse
In April and May 2018 Argentina's peso loses nearly 20 per cent of its value in 45 days.
The central bank intervenes several times, hiking its benchmark interest rate to 40 per cent and selling foreign currency reserves.
Massive IMF loan
On June 20 the IMF approves a US$50 billion bailout to tackle inflation, budget deficits and the weakening currency.
President Mauricio Macri's government agrees to take austerity measures.
Strike, protests
On June 25 the country grinds to a halt in a general strike to protest the loan, with many Argentines blaming the International Monetary Fund for the country's 2001 crisis.
In July and August there are demonstrations over soaring inflation in Buenos Aires and other cities.
On September 3 the government announces new austerity measures.
There is another major strike on September 25.
Even bigger loan
On September 26 the IMF agrees to boost its crisis loan package to US$57.1 billion to be delivered in installments over several months, with US$44 billion eventually paid out.
Argentina ends 2018 in recession, with growth down 2.5 per cent.
On April 4, 2019 tens of thousands of people protest against austerity.
To limit the impact of inflation, the government on April 17 freezes the price of basic goods and public services.
The fifth general strike of Macri's presidency brings the country to a standstill on May 29.
Macri poll setback
On August 11 Macri is crushed in a key party primary election by populist Alberto Fernandez, who emerges as the favorite for the October presidential elections.
On August 14 Macri announces minimum wage hikes, tax cuts and a freeze on fuel prices.
Two days later rating agencies Fitch and S&P downgrade Argentina's credit rating.
On August 28, Argentina asks the IMF to reschedule its debt.
Food emergency
On September 1, the government imposes exchange controls to reassure the markets.
On September 19, Congress adopts a food emergency law to allocate greater resources to social programmes.
Fernandez president
On October 27 Fernandez wins the presidential election.
The next day Argentina's central bank says it has sharply tightened currency exchange controls to stem a surge in capital flight.
Fernandez says on November 26 that he will renounce the remaining US$11 billion tranche of the country's IMF loan as soon as he takes office in December.
At his swearing in ceremony on December 10, Fernandez insists Argentina “wants to pay” its external debt but that it doesn't have “the means to do so.”
'Selective default'
On December 20 the government postpones paying some US$9 billion, leading ratings agencies Fitch and S&P, who consider it to be in selective default, to downgrade its debt. S&P later goes back on its position.
Emergency measures
On December 24 the government adopts a package of emergency measures, including tax hikes for the upper and middle classes, social help for the least well off and a 30 per cent tax on foreign currency purchases.
Inflation reaches 53.8 per cent in 2019, while the economy shrinks by 2.1 per cent.
Debt restructuring
On February 19, 2020, the IMF says Argentina's debt is “not sustainable.”
On March 10, the government proposes to restructure US$68.8 billion of the country's US$311 billion public debt, which accounts for 90 per cent of GDP.
On April 6, Argentina defers payments of up to US$9.8 billion on its local public debt until 2021 in response to the coronavirus crisis. — AFP
