The administration of President Nestor Kirchner faces a difficult challenge in shifting economic policy from short-term stabilization toward longer-term sustainable growth while addressing the needs of a population that has suffered a sharp fall in living standards (GDP fell cumulatively by around 20% during 1998-2002). Progress will depend, among other things, upon maintaining working relations with the International Monetary Fund (IMF), remaining current on multilateral debt, devising a credible plan to rebuild the financial system, and beginning the difficult process of debt renegotiation. Once Argentina emerges from default (where it was placed in late 2001, when the government defaulted on over US$60 billion in debt), its ratings will continue to be constrained by A high government debt burden, even after
