Another debt crisis is already brewing in Argentina, just two years after it exited its latest default. Investors have been reluctant to roll over maturing peso debt into longer-term securities amid fears of a crisis around the elections in October 2023. Analysts noted that the debt load is unsustainable. The vast majority of Argentina’s local debt is indexed to inflation, which is running above 60% annually. With the country bound by the monetary-emission targets under its $44bln EFF arrangement with the IMF, the government cannot print pesos freely to cover the financing gap. Meanwhile, the central bank has been reluctant to hike interest rates given that economic growth is teetering on the edge of a recession.