Band-Aid?THE INTERNATIONAL MONETARY FUND HAS patched together a rescue package worth up to US$40 billion for Argentina--a relief for investors who feared the country would default on its $123 billion in foreign debt but a sacrifice for Argentines worn down by austerity programs. The rescue plan may plug the hole in a foundering ship, but will it get the boat back to port? "The government promised us change, but all it has done is to deepen the problems of those most in need." retired accountant Alejandro Lencina, in Buenos Aires (CNN CNN or Cable News Network Subsidiary company of Turner Broadcasting Systems. It was created by Ted Turner in 1980 to present 24-hour live news broadcasts, using satellites to transmit reports from news bureaus around the world. ) "If Argentina goes under, there is a possibility there could be contagion Contagion The likelihood of significant economic changes in one country spreading to other countries. This can refer to either economic booms or economic crises. Notes: An infamous example is the "Asian Contagion" that occurred in 1997 and started in Thailand. that could engulf en·gulf tr.v. en·gulfed, en·gulf·ing, en·gulfs To swallow up or overwhelm by or as if by overflowing and enclosing: The spring tide engulfed the beach houses. the rest of Latin America." Sebastian Edwards, former World Bank economist (The Los Angeles Times Los Angeles Times Morning daily newspaper. Established in 1881, it was purchased and incorporated in 1884 by Harrison Gray Otis (1837–1917) under The Times-Mirror Co. (the hyphen was later dropped from the name). ) "Argentina is badly beaten up, so Chile is going to get hit." Walter Molano, BCP BCP Best Current Practice(s) BCP Business Continuity Planning BCP Business Continuity Plan BCP Book of Common Prayer BCP Banco Comercial Português BCP Bureau of Consumer Protection (US Federal Trade Commission) Securities (Reuters) "The rapid response by the IMF IMF See: International Monetary Fund IMF See International Monetary Fund (IMF). was an attempt to try to contain the crisis in Argentina... and avoid its spread." Morris Goldstein, Institute for International Economics and former IMF official (Reuters) "Although the upcoming IMF package is great news for Argentina, the problems in the medium term still remain to be solved." J.P. Morgan, in a letter to its clients "It deflates the panic for a while." Rita Lavin, senior economist at Standard & Poor's (Business Week) "When the dust settles, the question will return: 'How much can this economy grow?'" Andres Lederman, Argentina economist at Salomon Smith Barney (Financial Times) |
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