In the year 2001, the Argentine financial crisis ‘came to a head’ as the government of Argentina deliberately ended payments on loans from private creditors. Negotiations between private investors and the current Argentine government are not going smoothly, as President Kirchner is apparently unable to provide the creditors the amount they have requested. Although some creditors have resorted to legal action in order to receive payment for their loans, “Argentine officials say the country cannot afford more...[and] Even if it could, a larger offer would go down badly in Argentine politics.” (Walker, BBC News) President Kirchner seems to be caught between a group of irritated investors who want to be repaid for their loans and a mob of angry citizens who want to see unemployment and inflation issues prioritized. Besides efforts of the IMF to restore confidence in the Argentine economic system, President Kirchner seeks help from the region to avoid another recession or crisis. One example of this cooperation amongst neighboring nations is an endeavor entailing “a $240m agreement to import Venezuelan fuel in exchange for agricultural goods,” signed by Argentina. This deal anticipated a rising demand for oil that Kirchner feared would be cause for another economic crisis. Another form of collaboration is “a co-operation deal between Venezuelan energy firm PDVSA and Argentina’s Enarsa...Under this deal, the Argentine market will be opened to Venezuelan investment.” (Argentina Venezuela in Oil Deal, BBC News) Regional cooperation is definitely a step in the right direction for Argentina as many Latin American countries face similar plights. Interaction between neighboring countries may lead to economic stability in the future.
