August 2, 2001 |
Argentina's troubled economy suffered another glum day Wednesday, as stock and bond prices continued their downward slide despite the latest government attempt to relieve its debt financing burden for this year. The Merval stock index sank 4.3% to 307.80, bringing its year-to-date loss to 26%. Argentine bonds also got a pounding by foreign investors, sending yields soaring. The sell-offs occurred despite a steady stream of positive news emanating from Argentina's political world this week.
July 31, 2001 |
The Argentine government's key austerity bill was finally passed by Congress in a move seen as vital to quash fears of imminent default and help the economy out of crisis. After an all-night debate, the opposition-dominated Senate approved the unpopular bill to end deficit spending and slash state salaries and some pensions by as much as 13%, in an eagerly awaited predawn vote.
July 25, 2001 |
Jacqueline Bua knows there are real enemies in the world, but more than anything, she says she has become a victim of forces beyond her control. Last year, the health-care worker saw her salary drop by 12%, and she expects it to fall an additional 13% because of what are known here as "adjustments," cuts ordered by the government to help balance the budget. The cost of essentials has climbed, with gasoline, for example, topping $4 a gallon.
July 20, 2001 |
A general strike paralyzed much of Argentina on Thursday, reflecting popular dissatisfaction with the government's controversial round of austerity measures designed to pull the nation back from the economic brink. The strike, combined with continued political bickering over how the austerity measures are to be applied, helped push stocks and bonds lower Thursday. There were no reports of serious violence during the 24-hour stoppage.
July 18, 2001 |
Argentines, fearful that the government might abandon their currency's peg to the dollar, have pulled $2.6 billion out of the banking system, figures released Tuesday showed. The data raise concerns over a possible exodus of capital if the withdrawals are not halted. The statistics cover withdrawals during the five banking days ended Thursday. Because of delays in reporting, figures for Friday, which was considered another difficult day during the current crisis, were due to be released today.
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.