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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (13649)	12/14/2001 4:08:40 PM
From: Sully-	Respond to of 99280

Argentina Hopes to Avoid Default Cash-Starved Argentina Promises to Make First of Two Crucial December Debt Payments By KEVIN GRAY Associated Press Writer BUENOS AIRES, Argentina (AP) -- Cash-starved Argentina promised to make the first of two crucial December debt payments on Friday, scrambling to pay its creditors and prevent financial collapse. The payment of $700 million to avoid a debt default came amid rising social discontent with a four-year-old recession. Supermarket lootings flared up in at least two Argentine cities, one day after a nationwide strike crippled businesses across the country. Investors had been watching if Argentina would meet the multimillion dollar interest payments coming due on its $132 billion debt, despite being cut off from international aid. The government, struggling to stave off default, insisted Friday it would meet its obligations. ``Today's payments will be met and the funds will be deposited at the end of business, as usual,'' said Deputy Economy Minister Daniel Marx, capping a week of frenzied government negotiations with creditors. Citing personal reasons, Marx, the lead negotiator in efforts to restructure the country's debt load, resigned Friday, saying he would stay in an advisory role to help Argentina work through its debt reorganization. To make its debt payments, Argentina is forcing private pension funds to buy government bonds, raising the cash it needs to pay off creditors. Marx said government officials would continue to use pension fund money to meet other debts later this month. As the recession has deepened, the country has fallen into a crash crunch, struggling to keep up payments not only to creditors, but also to thousands of government workers and pensioners. Economy Minister Domingo Cavallo was forced to tap the pension funds after the International Monetary Fund held back $1.3 billion in bailout funds due this month -- money Cavallo had hoped to use to pay Argentina's debts. The protracted crisis has angered many in this South American country of 36 million, leading to eight national strikes against the government including a 24-hour work stoppage this week. Tens of thousands of workers stayed home Thursday to protest Cavallo's latest moves to partially freeze bank accounts, grinding public transport to a halt along with much of the nation's economic activity. There were isolated clashes between demonstrators and police. biz.yahoo.com