Argentina has accepted a debt restructuring plan with the IMF for a $45 billion debt incurred by Mauricio Macri's government in 2018. The plan was approved by a large majority in parliament, revealing a split within the governing coalition. President Alberto Fernandez's supporters negotiated with the right-wing opposition to pass the plan and avoid another default, while the left-wing faction, linked to Vice President Cristina Kirchner, boycotted the vote. The Central Bank accused Macri's officials of using loan funds for capital flight, but no judicial action followed. The IMF admitted to a flawed loan program in 2018. The restructuring includes austerity measures, which the left-wing faction opposes, emphasizing the need for inclusive policies to address the needs of over 5 million Argentinians in extreme poverty.

The Russian invasion and Western sanctions will have economic repercussions not only on Moscow's allies like Cuba, Nicaragua, and Venezuela. By the Summit of the Americas in July, the USA will call on the countries of the region to make a choice of side: the options are not many. Latin America's reaction to the Russian invasion of Ukraine has brought few but interesting surprises. Venezuela, Nicaragua, and Cuba, already subject to European and/or US sanctions, immediately sided with Moscow, attributing all responsibility for the escalation in the region to NATO. Colombia, the only 'global partner' of the Atlantic Alliance in Latin America, immediately joined the Western measures against Vladimir Putin's government and Russian financial entities.

On September 7, 2021, El Salvador became the first country in the world to legalize Bitcoin as legal tender. Businesses and commercial activities are required to accept payments made with the cryptocurrency, which will coexist with the US dollar as the official currency of the Central American state. This bold move is another in a series of unorthodox decisions by President Nayib Bukele, leaving El Salvador with two official currencies, neither of which it can control.

After thirty years, Peru breaks with Fujimorism. However, it will remain committed to the rules of the international market and the United States. Comparisons with Venezuela do not hold up. Pedro Castillo, a rural teacher from the Andean region of Cajamarca, unionist, and leader of the far-left party Perú Libre, has won the runoff elections. On July 28, the bicentennial anniversary of independence, he was sworn in as the president of Peru. His victory as a provincial outsider who identifies as a Marxist-Leninist may seem epochal for a country dominated for thirty years by an economic and social model imposed by the elites of Lima.

India has banned 59 Chinese apps, signaling a strategic shift towards the US and away from its neutral stance. Hong Kong's new national security law significantly reduces its autonomy, undermining the 'one country, two systems' principle. Israel's annexation of the West Bank is delayed, reflecting internal divisions and strategic hesitations. The USMCA trade agreement has come into effect, marking a victory for Trump and impacting Mexico's domestic reforms and international positioning. Germany begins its EU Council presidency, with a focus on economic recovery, Brexit negotiations, and a tougher stance on China without fully antagonizing it.

The week began with a positive note for Italy as France and Germany proposed a €500 billion plan that aligns with Rome's request for common debt issuance to fund economic recovery without resorting to loans. However, the amount is not seen as sufficient to offset the economic downturn in Europe. The Franco-German plan is not a revolutionary moment for the EU, as it aligns with Germany's geopolitical strategy to maintain favorable conditions for its manufacturing surplus. The Turkish-supported Government of National Accord's capture of the al-Watiya base in Libya marks a new phase in the conflict, strengthening Ankara's hold on Tripolitania. The UK government's announcement of a maritime border with Northern Ireland post-Brexit represents a significant shift, introducing bureaucratic division for the first time since the 17th century. Argentina has technically entered default on a $503 million payment to international creditors, but negotiations on restructuring the $66 billion debt continue, with both sides appearing to move closer to an agreement. Hong Kong faces potential protests as China plans to introduce a national security law, which could exacerbate instability and affect relations with Taiwan and the US. The US's planned exit from the Open Skies Treaty is seen as a move against Russia and China, potentially leading to the end of the New START Treaty.

Five Italian special forces soldiers were wounded in Iraq, highlighting the challenges faced by Italian institutions in justifying the use of force to a public skeptical of war. Bolivian President Evo Morales resigned after the military and police urged him to do so amid opposition protests and allegations of election irregularities. Spain's repeat elections increased parliamentary fragmentation without resolving the political deadlock, with the Socialist Party losing seats and the far-right Vox party gaining. In Hong Kong, protests escalated with serious injuries and a death, while the government received backing from Beijing. Iran announced a new oil field discovery, potentially increasing its reserves by a third, amid tensions with Saudi Arabia and offers of nuclear cooperation with Gulf countries.

Uruguay faces a pivotal moment in its primary elections to determine presidential candidates for the October 27th election. The Broad Front, the ruling left-wing party since 2005, may lose power for the first time as internal competition intensifies among four candidates. Despite the country's economic success and the lowest poverty rate in Latin America, the Broad Front must navigate a political landscape where right-wing parties like the Partido Nacional and Partido Colorado are gaining ground. Carolina Cosse, representing the wing of change within the Broad Front, discusses the party's legacy, Uruguay's international stance, and the need to further civil rights, including addressing gender violence.

Argentina's political parties finalized their candidate lists for the presidential elections on October 27, with potentially eight president/vice-president tickets in the running. President Mauricio Macri's coalition, Frente Justos por el Cambio, includes Miguel Ángel Pichetto as vice-president. The opposition, Frente de Todos, is led by former President Kirchner's chief of staff, Alberto Fernandez, with Cristina Kirchner as vice-presidential candidate. The country faces a deep economic crisis with a debt of $156 billion, a third owed to the IMF, and Macri is positioning himself as the guarantor of fiscal responsibility. The opposition proposes prioritizing social recovery over debt obligations. Argentina's economic indicators show high unemployment, poverty, inflation, currency devaluation, and interest rates.

The Venezuelan crisis has highlighted the challenging relationship between Bogotá and Caracas, with Colombia being a primary destination for Venezuelan migrants crossing the border. The regional instability triggered by the crisis poses significant challenges for Colombia's new president Iván Duque, who is supported by major conservative governments in the hemisphere.