BUENOS AIRES -- The deal between the IMF and Argentina heads off the danger of an imminent default, but it will make little difference to most Argentineans, who appear to be in for a protracted period of austerity. The deal also represents a significant roll back of what was supposed to be a tough policy regarding emerging market debt by the Bush administration.
The deal to provide up to $8 billion in additional funds will allow the government to service its debts and strengthen the financial system. The additional funds, $5 billion of which will be made available in the near term, will be used largely to support the financial system, which has been hit by shrinking ...