Argentina then defaulted on its $155 billion foreign debt payments, the largest such default in history. After more instability, Congress named Eduardo Duhalde president on Jan. 1, 2002. Duhalde soon announced an economic plan devaluing the Argentine peso, which had been pegged to the dollar for a decade. The devaluation plunged the banking industry into crisis and wiped out much of the savings of the middle class, plunging millions of Argentinians into poverty.

In July 2002, former junta leader Galtieri and 42 other military officers were arrested and charged with the torture and execution of 22 leftist guerrillas during Argentina’s 7-year military dictatorship. In recent years, judges have found legal loopholes allowing them to circumvent the blanket amnesty laws passed in 1986 and 1987, which allowed many accused of atrocities during the dirty war to walk free. In June 2005, the Supreme Court ruled that these amnesty laws were unconstitutional and in 2006, numerous military and police officials went on trial.

Peronist NŽstor Kirchner, the former governor of Santa Cruz, became Argentina’s president in May 2003, after former president Carlos Menem abandoned the race. Kirchner vowed to aggressively reform the courts, police, and armed services and to prosecute perpetrators of the dirty war. Argentina’s economy has been rebounding since its near collapse in 2001, with an impressive growth rate of about 8% since Kirchner took office. In March 2005, Kirchner announced that the country’s debt had been successfully restructured. In Jan. 2006, Argentina paid off its remaining multi-million IMF debt early, a dramatic move that not all economists thought was beneficial.

On July 10, 2007, Buenos Aires witnessed its first snowfall in 89 years. The unusual storm coincided with Argentina’s Independence Day.