Thousands of people have taken to the streets in Argentina to oppose the government’s plan to impose austerity in exchange for a fresh loan from the International Monetary Fund. The demonstrations came ahead of a 24-hour general strike.
Protesters in Buenos Aires have clashed with police in front of Congress to protest cuts to the 2019 budget bill. Argentina's President Mauricio Macri needs those cuts as he has committed to balancing the budget.
Some emerging economies, including Turkey and Argentina, could be forced to cut spending to bridge yawning deficits. As interest rates continue to rise in the US and Europe, there is no respite for them any time soon.
The International Monetary Fund (IMF) has been described as the lender of last resort for countries in financial distress. But the stiff medicine doled out by the fund is still subject to huge controversy.
President Mauricio Macri said his country is facing "an emergency" that required massive spendings cuts and agricultural taxes. This year, Argentina's currency has already lost half its value compared to the US dollar.
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