The fact that Argentina is in talks with the International Monetary Fund for emergency aid to stave off default might not be a big deal. The size of the package being revised, the speed at which it went sour, and the impact of the Pandemic on the economy are all unusual. There is a clash between the left-leaning government that wants more freedom to spend and the International Monetary Fund that wants budget cuts. Argentina's foreign reserves are in danger of running out as a March deadline looms. The International Monetary Fund has sunk a bigger share of its resources into a single country than ever before.
The country, home to 45 million people, wants more time to repay over 40 billion dollars owed to the International Monetary Fund. The EFF would give the country at least a four-and-a-half year grace period before starting to pay back its debt. The idea has been accepted by the International Monetary Fund, but talks are still going on about how quickly the government should reduce its fiscal deficit. The lender is trying to impose a program that could affect economic growth.
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