Argentina: Political and Economic Conditions and U.S. Relations

Publication Date: October 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Coverage: Argentina

Abstract:

Argentina's restructuring of over $100 billion in defaulted bond debt in June 2005 demonstrated the country's emergence from its 2001-2002 economic crisis that had caused severe stress on the political system. Current President Néstor Kirchner, elected in 2003, has made bold policy moves in the areas of human rights, institutional reform, and economic policy that have helped restore Argentines' faith in democracy.

The October 2005 legislative elections demonstrated strong support for President Kirchner, whose popularity at this juncture bodes well for his re-election if he chooses to run in the October 2007 presidential election. Economic growth has rebounded since 2003, and in January 2006, Argentina paid off its $9.5 billion debt to the International Monetary Fund. Looking ahead, the government faces such challenges as reducing poverty and controlling inflation while maintaining strong economic growth. Issues of concern to Congress include continued cooperation with Argentina on counter-terrorism issues and progress in Argentina's investigation of the 1994 Argentine-Israeli Mutual Association bombing. For additional information, see CRS Report RL32637, Argentina's Sovereign Debt Restructuring, and CRS Report RL33620, Mercosur: Evolution and Implications for U.S. Trade Policy, by J. F. Hornbeck.