Peron's mobilization of the working class had an enduring effect on Argentina's political system over the next four decades. Progress and Challenges for Kirchner

President Kirchner's bold policy moves in the areas of human rights, institutional reform, and economic policy have helped restore Argentines' faith in government. In June 2005, the Kirchner government was successful in restructuring more than $100 billion in defaulted bond debt at about 34 cents on the dollar, saving the country more than $67 billion in the largest debt-reduction ever achieved by a developing country. In January 2006, Argentina ultimately chose to repay its $9.5 million debt owed to the IMF in order to give the government autonomy on economic policy. For many observers, the October 2005 legislative elections served as a referendum on the Kirchner government and demonstrated continued strong support. Most analysts believe that Kirchner would likely win the October 2007 presidential election if he chooses to run. Congress has expressed concern regarding Argentina's investigation into the July 1994 bombing in Buenos Aires of the Argentine-Israeli Mutual Association (AMIA) that killed 85 people.
Argentina's restructuring of over $100 billion in defaulted bond debt in June 2005 demonstrated the country's emergence from its 2001-2002 economic crisis that had caused severe stress on the political system. Current President NÃ©stor Kirchner, elected in 2003, has made bold policy moves in the areas of human rights, institutional reform, and economic policy that have helped restore Argentines' faith in democracy. The October 2005 legislative elections demonstrated strong support for President Kirchner, whose popularity at this juncture bodes well for his re-election if he chooses to run in the October 2007 presidential election. Economic growth has rebounded since 2003, and in January 2006, Argentina paid off its $9.5 billion debt to the International Monetary Fund. Looking ahead, the government faces such challenges as reducing poverty and controlling inflation while maintaining strong economic growth. Issues of concern to Congress include continued cooperation with Argentina on counter-terrorism issues and progress in Argentina's investigation of the 1994 Argentine-Israeli Mutual Association bombing. For additional information, see CRS Report RL32637, Argentina ' s Sovereign Debt Restructuring , by [author name scrubbed] (pdf).