Argentina: Worst Economic Crisis since 2001

With Argentina's new president saying that his country is in "virtual default" and comparing the situation with the 2001 crisis, the worst in its recent history, here is a recap of the latest turmoil.

- Currency collapse -

In April and May 2018 Argentina's peso loses nearly 20 percent of its value in 45 days. 

The central bank intervenes several times, hiking its benchmark interest rate to 40 percent, selling foreign currency reserves and injecting more than $10 billion into the economy.

- Massive IMF loan -

On June 20 the International Monetary Fund approves a $50 billion bailout to tackle inflation, budget deficits and the weakening currency.

President Mauricio Macri's government agrees to take its own measures.

Two days later the IMF releases $15 billion. 

- Strike, protests -

On June 25 the country grinds to a halt in a general strike to protest the loan, with many Argentines blaming the IMF for the 2001 crisis.

In July and August there are demonstrations over soaring inflation in Buenos Aires and other cities. 

- Austerity -

On September 3 Macri announces austerity measures that include halving the number of government ministries and restoring taxes on grain exporters.

There is another major strike on September 25 and the president of the central bank resigns.

- Even bigger loan -

On September 26 the IMF agrees to boost its crisis loan package to $57.1 billion to be delivered in installments over several months.

The World Bank also agrees to two loans totaling $950 million.

Argentina ends 2018 with inflation at 47 percent, the highest since 1991. The peso has lost half its value against the dollar over the year.

- Price freeze -

On April 4 tens of thousands of people protest against austerity.

To limit the impact of inflation, the government on April 17 freezes the price of basic goods and public services. 

The fifth general strike of Macri's presidency brings the country to a standstill on May 29. 

- Macri poll setback -

On August 11 Macri is crushed in a key party primary election by populist Alberto Fernandez, who emerges as the favorite for the October presidential elections.

On August 14 Macri announces minimum wage hikes, tax cuts and a 90-day freeze on fuel prices.

Two days later rating agencies Fitch and S&P downgrade Argentina's credit rating.

On August 17 the economy minister resigns. 

- New president -

On October 27 Fernandez wins the presidential election.

The next day Argentina's central bank says it has sharply tightened currency exchange controls to stem a surge in capital flight.

Fernandez says on November 26 that he will renounce the remaining $11 billion tranche of the country's IMF loan as soon as he takes office in December.

At his swearing in ceremony on December 10, Fernandez insists Argentina "wants to pay" its external debt but that it doesn't have "the means to do so."

- Emergency plan -

Mid-December as the country's public debt reaches around 100 percent of gross domestic product and the poverty rate is at 41 percent, the government announces emergency economic measures.

The plan includes tax hikes, tax incentives for production and tax benefits to the most impoverished classes. It passes in the lower house and Senate for Fernandez's first legislative victory since taking office. 

- 'Virtual default' -

On December 20 the government postpones paying some $9 billion, leading rating agencies Fitch and S&P, who consider it to be in selective default, to downgrade its debt.

Two days later Fernandez says the country is in "virtual default".