WASHINGTON: Argentine President Cristina Kirchner’s government has been accused by a leading US Republican senator of risking a credit default and of failing to stand by its democratic promises. Latin America’s third-largest economy appears powerless in the face of the haemorrhage of its currency, the peso. Argentina’s central bank has said it burned through $2.1 billion in reserves in January alone. “It looks like they’re headed for another default because all the actions they’re taking today seem to be designed to avoid a short-term default, but their structural problems are extraordinary,” said Senator Marco Rubio, who has been talked of as a possible US presidential candidate in 2016. The Argentine government is struggling to beat back a mounting rush into dollars that has stoked 26% inflation, despite price controls on many items and pressure on businesses to avoid price increases.
Published in The Express Tribune, February 9th, 2014.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ