News: February 11, 2022. Argentina is Looking East

Argentina is the third Latin American economy. However, in spite of its size, it has a significant debt problem, and also a corruption problem. The debt is mainly with Western institutions. The International Monetary Fund (IM) is one of them.

The current leftist government has approached Russia and China in order to look for diversifying its sources of financing. With Russia, Argentina agreed to produce its COVID-19 vaccine Sputnik-V, and to receive investment for infrastructure projects. With China, Argentina agreed to join the Beijing’s Belt and Road Initiative, a massive global infrastructure program. China has agreed to finance projects such as creating 5G networks, developing Argentina’s lithium industry, and building the Atucha III nuclear power plant.
 

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.