Banks come to de la Rua's aid.

BUENOS AIRES -- Argentina's banks reacted quickly once the government began to make progress in resolving the nation's latest economic crisis, bolstering President Fernando de la Rua's credibility at home and - perhaps more important right now - with international lenders.

Three local banks, Banco de Galicia, Banco Frances, and Banco Rio de la Plata, agreed to roll over $3.2 billion worth of short-term credits in order to ease financial pressure on the government. The same three banks, as well as HSBC Bank Argentina, also offered to buy $625 billion in promissory notes due in 2002.

These moves followed the agreement by international lenders to provide additional resources to the government as well as a reform package announced by de la Rua Nov. 10.