Much of the focus in capital markets is on what central banks — and subsequently, issuers of both debt and equity — will do next. We discuss how those policy decisions will affect issuance in the capital markets this year. But meanwhile, a situation is brewing between Argentina, which is in no position to issue debt at all, and the IMF that could have huge repercussions for not only both parties but also the country’s bondholders.Argentina is no stranger to debt restructuring, the IMF or default. This time, the country owes the Fund $45bn as part of an agreement to help it out of an economic crisis from 2018. That crisis came after Argentina had spent a fleeting but glorious spell as a bond market darling after years locked out of debt markets thanks to a previous default. For a short while, the sovereign, its regional governments and other borrowers printed bonds like there was no tomorrow. When the economic reforms required to sustain such a debt pile failed to materialise, the inevitable happened and Argentina was back at the IMF for funding as it battled with bondholders over what it owed. Fast forward to this year and Argentina has reached an “understanding” with the IMF over a new funding package. Perhaps just as well given Argentina is supposed to pay around $3bn of that $45bn by the end of March at a time when it is running low on dollar reserves and has few ways of generating them.  But an “understanding” of “key principles” is a long way from a final agreement and as always in Argentinian debt negotiations, things are never run smooth. For a start, there are doubts that the possible funding package will help Argentina avoid another debt restructuring in 2024 in any case. Moreover, for an IMF prescription, the package seems unusually light on economic reform, leading to some speculation that securing this agreement is as vital for the Fund as it is for Argentina. And then of course, there is the political dimension, with the financial “understanding” triggering the resignation of a key political figure in protest this week.We discuss whether that is political posturing or a genuine threat to the IMF and Argentina’s chances of reaching an agreement and what implications that might have for the country and its creditors — both from the official sector and the capital markets.We also examine how the EU has perhaps scuppered its own plans to guide investors towards sustainable investing and we look at whether banks are worried about lending to Russian clients as the country’s stand-off with Ukraine runs on.