Argentina has received what may be a last chance to maintain access to its loan from the International Monetary Fund, but any relief in the country's increasingly desperate economic plight looks likely to be shortlived.

By focusing the burden of another fiscal adjustment on tax increases rather than on spending cuts, Mr Domingo Cavallo, the economy minister, has increased the prospects for approval of next year's budget plans. That could help ease the concerns of the IMF about the sustainability of Argentina's economic programme, eventually unlocking the disbursement of a $1.26 billion (€1.4 billion) loan from the fund.

However, tax increases will do little to stimulate growth in an economy. Without restarting growth, few believe Argentina has any chance of avoiding a default on its public debt.