IMF official

Argentina has signed into law a crucial bill designed to control public spending by the country's national and provincial governments. The new bill may help Argentina to secure a 13 billion dollar loan deal with the International Monetary Fund. This report from Elliot Gotkine:

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The new fiscal responsibility law means that local governments won't be able to increase public spending by any more than the rate of economic growth. And in a bid to prevent Argentina's provinces from running up too much debt, only a maximum of fifteen percent of their public spending will be able to come from borrowings. Any provinces breaching these limits could face financial penalties.

Some opponents of the bill said their government has bowed to pressure from the IMF at the expense of Argentina. Others say the law doesn't go far enough because it doesn't force the provinces to reduce public spending when the economy shrinks.

Listen to the words

with strings attached
with a number of conditions

to rein in
to control, limit or restrain

profligacy
here, careless waste of money

debt default
failure to pay back the money owed

fiscal
to do with public money

in a bid
trying, attempting

running up
accumulating quickly

breaching
failing to observe, going above

bowed to
conceded as a result of

shrinks
declines, grows smaller

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