Dwindling Debt Boosts Argentine Leader
Just four years ago, Argentina's economy was prostrate and its politics in chaos, after a financial crisis resulted in bank deposits being frozen, the government defaulting on more than $100 billion in debt and five presidents holding office in two weeks. But on Tuesday, the country is expected to pay off the last of its debt to the International Monetary Fund and simply walk away from further negotiations with the group. Argentina still owes tens of billions to private lenders, even after a debt restructuring in March. But the $9.8 billion payment is an important symbolic milestone and just one of several recent signs that President Néstor Kirchner appears to be concentrating more power in his own hands and steering his government to the left. Since a midterm election victory in October, Mr. Kirchner has also moved to establish an alliance with Venezuela's populist leader, Hugo Chávez, and, as a traditional Peronist, to extend the hand of the state deeper into the economy, the judiciary and the news media.
