Argentina was once one of the world’s richest countries. These days, it is a byword for a crisis-prone economy that has defaulted on its international sovereign debt nine times. An offer of financial support from Uncle Sam shows how far it has fallen.

The 2023 election of Javier Milei — a self described anarcho-capitalist who brandished a chainsaw during his presidential campaign to symbolise his war on waste — was supposed to turn the page on this narrative.

But after some initial success, Milei’s chainsaw seems to have sputtered. The value of the peso hit a record low this month after a heavy defeat for Milei’s party in local elections stoked concerns about the future of his free-market overhaul. Investors dumped bonds and stocks. The country’s benchmark Merval index — home to YPF, the state-owned oil company — extended its losses for the year to 25 per cent.