In May, Argentina reached an agreement with the Paris Club, a group of rich country creditors, to begin repaying debt of up to $9.7 billion that Argentina defaulted on during its 2001 economic crisis (see Update 26). Jorge Gaggero from the University of Buenos Aires emphasised that the importance of the deal was in “the exclusion of the IMF” from the Paris Club deal, meaning “the absence of perverse policy conditionalities and supervision.” Civil society groups criticised the repayment amount, double the original debt. Tim Jones of UK-based NGO Jubilee Debt Campaign said: “Rich countries have condemned the profiteering of so-called vulture funds in debt crises around the world, but this is vulture-like behaviour from the Paris Club themselves. Trying to double their money from Argentina’s default after private lenders accepted a two-thirds write-down is extraordinary hypocrisy.”
New BWP briefing offers critical gender analysis of World Bank lending instrument to borrowing countries.
At 75, the World Bank and IMF face a crisis of multilateralism in no small part of their own making as failed economic policies have resulted in skepticism of the international order they helped to create.
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