The resignation of Argentine Economy Minister Martín Guzmán on July 2 comes three months after he renegotiated his country’s $45 billion debt with the International Monetary Fund. The fund says the stabilization and growth program it worked out with Mr. Guzmán is still on track. But widespread fears that a sharp devaluation of the peso is coming, along with higher inflation, suggest otherwise. The country could be headed for another crackup.
The March rescheduling of the IMF debt wasn’t the first time Mr. Guzmán bought more time for the world’s most notorious deadbeat to repay what it has borrowed. In August 2020 he led a restructuring of some $65 billion in sovereign debt held by major bondholders such as Fidelity Management & Research Co., Monarch Alternative Capital LP, VR Capital Group, Greylock Capital Management and Pharo Management LLC.