Coronavirus Politics Daily: Argentina on the brink, Egypt's emergency law abuse, Hong-Kong's political fever
Argentina's economy on the brink: Mired in economic crisis, Argentina is on the verge of defaulting on its international loans for the ninth time in its history. Years of economic mismanagement had pushed Argentina into a recession even before the government imposed one of the tightest coronavirus lockdowns in Latin America in late March. The country's already weak currency, meanwhile, has taken a further hit because of the health crisis, pushing up the cost of $500 million in interest due over the next few weeks. The country's leftwing government says that, given soaring healthcare costs and emergency financial aid being doled out to help Argentines weather the COVID-19 storm, it can't make the payment and has appealed to international creditors, including the World Bank and IMF, to delay or renegotiate about $65 billion in debt. Buenos Aires has the support of hundreds of respected international economists who have called on bondholders to take a "constructive approach" to Argentina's restructuring proposal. In normal times, Argentina would get little sympathy from international lenders fed up with its unreliability and political gamesmanship, but the global economic downturn could finally give the desperate country some leverage with economic heavyweights in Brussels and Paris.