June 20, 2001 |
Latin American stocks continued to fall Tuesday as officials pushed to defend a new policy on Argentine exchange rates that many feared could lead to a devaluation. After a decade of pegging its currency, the peso, to the U.S. dollar on a one-to-one basis, Argentina announced late Friday that it was setting up a separate exchange for trade transactions, making imports 7% more expensive.
June 19, 2001 |
Stocks across Latin America and in Spain plunged Monday after Argentina stunned the financial community with a new policy on exchange rates that some analysts saw as a de facto devaluation. The policy changes, announced over the weekend, obliterated much of the confidence earned when Argentina exchanged $29 billion in debt this month, a move that seemed to give the country some breathing room from worried creditors.
June 4, 2001 |
Argentina surpassed expectations by swapping nearly $29.5 billion of old debt for new in its drive to stamp out investors' fears of a debt default, Economy Minister Domingo Cavallo said Sunday. Argentina's much-awaited exchange of short-term debt for longer-term issues will defer debt service costs by $16.04 billion through 2005, Cavallo said. The government hopes the swap will provide financial stability to help end the economy's nearly three-year funk.
May 28, 2001 |
Argentina's economy minister, Domingo Cavallo, will try this week to convince U.S., European and Asian investors that the panic about Argentine debt will be quelled by a major new bond swap. "The high interest rates and mistrust of bondholders are like a high fever. We have to bring it down. I have tried and will try this week to bring down this financial fever," he told Argentine newspaper Clarin over the weekend.
April 30, 2001 |
Argentina will resume regular Treasury bill auctions on May 8, two weeks after the postponement of a planned sale sent bonds plunging to their lowest level since 1998, Economy Minister Domingo Cavallo said. Cavallo credited the International Monetary Fund for his decision to return to the market, saying he has almost "completely closed" an accord with the IMF to back his economic program and open the way for billions of dollars in loans.
April 26, 2001 |
President Fernando De la Rua named a new president for the powerful central bank Wednesday, effectively removing the beleaguered chief. It was the latest chapter in Argentina's economic and financial crisis, which has spooked global investors and raised fears that the country could default on its $128 billion in debt. Pedro Pou's post was declared "vacant," and Roque Maccarone was named interim president.
April 24, 2001 |
Argentine bonds and stocks tumbled again Monday after the government balked at paying soaring interest rates and canceled a planned debt auction--adding to investor concerns that the country won't meet payments on its $128-billion debt. The annualized yield on the government's most actively traded bond leaped to 22.1%, highest since September 1998. That yield suggests that global investors consider Argentina riskier than Russia. The nation's main stock index slid 2% to 411.53.
April 21, 2001 |
The ugly specter of a debt default by Argentina returned with a vengeance Friday, as rumors of an imminent economic meltdown led panicked stock and bond traders to exit Latin American markets en masse. Argentina's Economy Minister Domingo Cavallo attacked the swirling rumors of default as "irresponsible," but traders still appeared to be betting that the nation's troubled economy would soon collapse under the government's $128-billion debt load.
April 20, 2001 |
Hurricane Cavallo is back. And he could be Argentina's last chance. In the month since he became economy minister for the second time, Domingo Cavallo has stormed onto center stage in a whirl of trademark eloquence and vitriol. Cavallo charmed and browbeat Congress into giving him emergency powers to tackle a fearsome economic crisis.
April 1, 2001 |
Argentina's economic malaise has reached crisis proportions, which forced it to take radical steps last week in an effort to avoid a financial implosion that could spread to other Latin American nations and discredit the free-market doctrines they have embraced over the last 10 years. Argentina's woes are considered among the world's most worrisome, with symbolic, political and financial ramifications.