Argentina Background & Issue Definition Argentina is rich in natural resources and boasts of an export oriented agricultural center as well as a diversified industrial base. Recurring economic problems of inflation, external debt, capital flight, overvalued currency and budget deficits have put the nation into severe debt and default with the IMF. Currently, 51.7% of the population lives below the poverty line. In December of 2001, Argentina defaulted on $81.8 billion that it owed in bonds. With …
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showed last 75 words of 425 total
…successful swap of debt will still leave Argentina with debt worth around 80% of GDP. Of course investors want to minimize losses and recover as much debt as possible. The recovery possibilities in Argentina are minimal beyond what has been offered. Nevertheless, it is in all parties' interests to see the country reemerge from this. By stabilizing the economy and making the market stable for capital investment again, investor faith can be rebuilt for future prosperity.