"With the restructuring of over $100 billion in defaulted bond debt in early March 2005, Argentina appears to have emerged from its 2001-2002 economic and political crisis despite last minute U.S. court challenges that have delayed the bond exchange. The current administration of President Néstor Kirchner faces still considerable challenges, including the ability to build the political consensus needed in order to ensure future sustainable economic growth and financial stability. While the country was under considerable stress in 2001 and 2002, the democratic political system weathered the crisis and economic growth has resumed, from a decline of almost 11% in 2002, to 8.8% in 2003, and an estimated growth rate of 8.5% in 2004. President Kirchner's bold policy moves in the areas of human rights, institutional reform, and economic policy have helped restore Argentines' faith in democracy. For further information on Argentina's debt problem, see CRS Report RL32637, Argentina's Sovereign Debt Restructuring. For background on Argentina's economic crisis in 2001-2002, see CRS Report RS21072, The Financial Crisis in Argentina."
CRS Report for Congress, RS21113