Argentina's New Debt Deal Is Just the First Step in Its Recovery

The deteriorating global and local economic conditions due to COVID-19 paved the way for a breakthrough in deadlocked negotiations between Argentina and its creditors by adding an impetus for debt reduction. Unlike previous rounds of talks that ended in long and acrimonious disputes, negotiations this time yielded a concrete agreement to significantly restructure roughly $65 billion in Argentine sovereign debt. But while the new debt deal is a significant accomplishment, Argentina's economic recovery still depends on President Alberto Fernandez's ability to balance his populist credentials against the need to appease the International Monetary Fund (IMF) and provide a healthy environment for investment by implementing structural reforms. ...