Argentina-IMF Debt Talks Make Progress, but Risks Remain

The announcement of an "understanding" with the International Monetary Fund (IMF) puts Argentina one step closer to inking a deal that unlocks additional financial support. But political calculations in Buenos Aires and internal debates in the IMF could still derail negotiations, which would likely result in an Argentine debt default. On Jan. 28, the Argentine government and the IMF released separate announcements boasting that their negotiation teams reached a general “understanding” on fiscal and monetary policies. While the details of the understanding were not announced, it nonetheless marks a step in the direction of a larger IMF deal that would avoid a default and could reduce Argentina’s isolation in financial markets....