July 17, 2001 |
In a move designed to reassure nervous investors, President Fernando de la Rua reached agreement Monday night with the main opposition governors to back a plan that would cut the budget. The agreement was announced hours after the stock market continued its plunge. The pact's details are to be announced today. "We have arrived at an agreement in fundamental concepts to arrive at zero deficit," Cabinet chief and lead negotiator Chrystian Colombo told reporters. Salta Gov.
July 14, 2001 |
The White House on Friday refused to help Argentina with its growing financial crisis. President Bush's national security advisor said Argentina should work to stabilize its economy, South America's second largest, and adhere to a course of fiscal responsibility that it had already set with the International Monetary Fund.
July 13, 2001 |
This week's Latin American market sell-off turned into a headlong rush to the exits Thursday as investors dumped stocks, bonds and currencies, fearful that Argentina lacked the political will and financial resources to avoid financial disaster. Fiel, a think tank affiliated with the government, estimated depositors pulled $1 billion in pesos from accounts on Thursday in anticipation that Argentina might devalue the currency, breaking the 1-to-1 peg to the U.S.
July 12, 2001 |
Latin American currencies and bonds dropped Wednesday as contagion from Argentina's deepening financial crisis spread. Argentina's stocks were whipsawed, with the Merval exchange average plummeting 7.1% before ending the day down 2.2%. Shaken by a treasury auction Tuesday in which Argentina was forced to sell short-term notes at exorbitant rates to refinance its debt, investors bailed on bonds across the hemisphere.
July 11, 2001 |
Stocks in Argentina slid to their lowest level since 1999 on Tuesday amid a new wave of doubts that the country can solve its economic ills. The plunge also drove down stocks and currencies in other Latin American countries. Argentina's main stock index, the Merval, fell 6.1% after the government was forced to pay investors more than 14% interest on 91-day treasury bills to help refinance $850 million in dollar-denominated debt.
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.