ARGENTINA
The Overhaul
Argentine lawmakers approved an emergency economic reform package over the weekend in a bid to boost the country’s economy, reduce poverty and lower inflation to stave off fears of default by nervous creditors and international markets, Reuters reported.
The law was approved by both the houses, less than two weeks after moderate Peronist Alberto Fernandez took office.
The reform is meant to show creditors that Argentina will see sustainable growth in the future as the economy is expected to shrink for a third straight year in 2020.
Fernandez aims to restructure talks on about $100 billion in debt owed to bondholders and the International Monetary Fund.
He also plans to achieve fiscal equilibrium in 2020 and put an end to government subsidy cuts under the previous President Mauricio Macri.
“This bill represents a new type of fiscal adjustment for Argentina in that it is focused on taxing the rich,” said analyst Julio Burdman. “It combines sound economic policy with a progressive political approach.”
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