LatinNews Daily - 13 December 2021 |
ARGENTINA: Tension growing over IMF agreement |
On 11 December thousands of students, community activists, and trade unionists led a demonstration in Buenos Aires against what they described as an imminent economic stabilisation agreement between Argentina and the International Monetary Fund (IMF). Analysis: The protest was mainly organised by left-wing organisations, such as the Movimiento Socialista de los Trabajadores (MST), which between them lack sufficient congressional representation to block an IMF agreement. But it highlighted the growing tension within the ruling centre left Frente de Todos (FdT) coalition over the political repercussions of an IMF deal. Analysts believe a damaging split between supporters of President Alberto Fernández and Vice-President Cristina Fernández cannot be ruled out.
Looking Ahead: Immediately after the November md-term elections – in which the FdT coalition lost its majority in the senate, President Fernández promised to submit a multi-year economic programme to congress, which, it was understood, would mirror the IMF stabilisation agreement. The fact that it has still not appeared suggests domestic political consensus remains elusive, and the government is beginning to run out of time. To avoid default, an IMF programme needs to be finalised and ratified by congress by March. |