China, with its loan program to do infrastructure upgrades for African countries, learned the countries it loaned the money for the work projects was hard to get from their African payees without coming back to make additional loans to cover interest for late payments, etc.
Now, in South America, one country in particular has had a long history of working with the IMF, the International Monetary Fund, in getting money loaned to Argentina repaid. According to the Economist, April 5th Issue, 2025, the current President of this country established a running record to prove his worthiness to be trusted to yet another loan. President Javier Milei showed the Bank that he was not like former presidents by presenting the austerity program in effect in the country to indicate his good faith in wanting to repay what is due: "Mr. Milei's first deal will be Argentina's 23rd."(p. 62)
Clearly, Mr. Milei had to prove himself worthy of the trust the Bank would have to show that he truly is a man of his word. He must be a spendthrift, belt-tightening individual with someone else's money. And this President came through with a proposal he steadfast followed, along with his people, that proved his financial mettle and economic leadership.
"Far better to give Mr. Milei firepower to remove Argentina from the IMF's books." Comments the Economist, "Mr. Milei has earned it."(bold type, mine).
My opinion.
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