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To: TobagoJack who wrote (11311)	11/25/2001 5:03:49 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

No I didn't adjust. 18 years abroad. Interrupted by a short time to come here and get married. You are right the separation of Brazil from Argentina is temporary. As you once wrote: every ten years there is a severe financial crisis down here. I never underestimate the capacity of the LATAM governments to make mistakes and implement lousy economic policies. If they didn't it right for about 500 years why should they start just now to do it? Wife and kid are adjusting wonderfully, by the way.

To: TobagoJack who wrote (11311)	11/27/2001 7:01:10 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

Financial Times tells Argentina to default: LEADER: De la Rua's task Financial Times; Nov 26, 2001 Events of the past couple of weeks in Argentina have further undermined the credibility of President Fernando de la Rua and of his government's latest plans to revive an economy now mired in its fourth successive year of recession. The time has come to consider a new approach. Argentina's recovery plan is centred on its proposal to exchange more than Dollars 90bn of debt for new paper that will be cheaper to service. The government had hoped that annual savings of more than Dollars 4bn would allow it to meet its commitment to eliminate its fiscal deficit, as well as allowing a resumption in economic growth. The plan is already running into trouble, however. As Argentina's financial crisis worsens it is becoming more doubtful whether the scale of the envisaged payment reduction will be enough to start a recovery. Tax collection has begun to decline at a faster rate, reflecting the deepening recession. Last week the government said that during this quarter it would not meet the deficit targets, an admission that threatens its agreement with the International Monetary Fund and access next month to disbursements of Dollars 1.3bn. These pressures have been accompanied by resignations of another government minister and senior advisers, leaving Mr de la Rua and Domingo Cavallo, his economy minister, more isolated. In these circumstances, more radical actions need to be considered. An outright default might be necessary, since bigger cuts in servicing obligations would provide some resources to stimulate the economy. It is true that Argentina would lose credibility in the markets but it has little left to lose. In addition, it is becoming plain that Argentina must examine alternatives to its currency board. This is especially the case because of the weakness of the banking system. About Dollars 2.7bn in private sector deposits has been withdrawn since the beginning of October. Either dollarisation or a float of the kind proposed recently by Ricardo Hausmann, former chief economist of the Inter-American Development Bank, would be preferable to the present regime. Mr Hausmann proposed that all US dollar assets and liabilities - except those to the international financial institutions - should be redenominated into inflation-indexed pesos, a measure that would lessen the impact of devaluation on a financial system that is already heavily dollarised. Neither alternative is without pitfalls but the existing approach is clearly not working. By persisting with it, the government could be unwittingly opening the way to a more disorderly and chaotic breakdown. Copyright: The Financial Times Limited 1995-1998

To: TobagoJack who wrote (11311)	11/27/2001 7:04:45 AM
From: elmatador	Respond to of 74559

Argentina devaluation would be disastrous - De la Rua AFX Europe; Nov 23, 2001 BUENOS AIRES (AFX) - A devaluation of the peso would be "disastrous" for Argentina because of the number of Argentines who have dollar loans and because of the cut in salaries that would accompany devaluation, President Fernando de la Rua said. A devaluation "would be disastrous because Argentines have debts in dollars and also because there would be a sharp fall in salaries," De la Rua said before leaving for the Ibero-American summit in Lima. "The resources for Convertibility are assured, and there is a dollar for every peso. There is no risk and the reserves of the central bank back the financial system," De la Rua said. "At times the central bank has to assist a bank, but Convertibility is strong," De la Rua added, referring to loans which the central bank has given to state-owned Banco de la Nacion, which in turn has been buying Treasury bills (Letes). Earlier this week, newly appointed Economic Policy Secretary Guillermo Mondino said the government is using funds from state-owned Banco de la Nacion Argentina as transitory coverage for debt services. This occurs for "a few days when maturities peak, (because) the greatest need (for funds) is at the beginning of the month, while revenues come in the last few days." The government has been seeking early disbursement of a 1.26 bln usd tranche in financial assistance from the International Monetary Fund, with analysts pointing to heavy amortisations of debt due this month and next. dm/dl/re/as World Reporter All Material Subject to Copyright