Limited access to funding. Lack of predictability on the direction of economic policies. Growing rigidities in government spending, in large part because of rising subsidies, which will complicate fiscal policy implementation. Argentina is expected to maintain surpluses or only small deficits on both fiscal and current accounts in 2011 and 2012. A relatively high level of international reserves, despite the use of reserves for payment of external debt. High levels of human capital that support long-term growth. The ratings on the Republic of Argentina are constrained by the government's limited access to financing, the economic policy uncertainties that have been contributing to the double-digit inflation rate, and the government's spending rigidities, which are characterized by increasing participation of subsidies. The
