Martin Redrado: Argentina must look beyond 2015

By Martin Redrado - thebanker.com



The debt crisis is not Argentina’s only problem. The authorities also need to put the county back on a sustainable growth path.

A long-lasting resolution of the conflict between the Argentine government and a group of holdout creditors would have been consistent with the normalisation steps towards the international community adopted earlier this year by the government. See, for example, Argentina’s settlement with Repsol, its engagement with the International Centre for Settlement of Investment Disputes, and the country's agreement with the Paris Club group of international creditor governments to repay arrears. Instead, only six months later, authorities decided to administer the scarcity of dollars available by a continuous use of the central bank’s chequebook and muddle through the imbalances until the election.