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"___  Document 5 of 634  Argentine deal opens way for aid from IMF  Author: Catan, Thomas  Publication info: Financial Times [London (UK)] 21 Nov 2000: 07.  http://search.proquest.com/docview/248842422?accountid=28034  Abstract: Investors cheered news of the accord, expressing relief that a delicate political situation had not derailed the international rescue package. Argentina's FRB bond, the most widely-traded of its Brady issues, rose 1{1/4} to 88{1/4}. An IMF delegation will now travel to Buenos Aires to put the finishing touches on Argentina's new programme. Faced with a severe credit crunch, Argentina was forced to turn to the IMF for help earlier this month. After more than two years of economic stagnation, investors were fearful that the country might prove unable to borrow the $20bn it needs to continue servicing its $123.5bn in foreign debt.  Full text: Following eight days of tense negotiations, Argentina's government has secured agreement of provincial governors for a set of emergency economic measures, opening the way for an international rescue package that could total $20bn or more. Yesterday, all but one of the 14 Peronist governors s"
"___  Document 74 of 634  Bandwagon rolls on and on: INTERNET EUPHORIA IN ARGENTINA by Thomas Catan: Despite a severe stock market correction in April, the country's online sector is awash with good ideas - although finance is harder to come by  Author: Catan, Thomas  Publication info: Financial Times [London (UK)] 01 Nov 2000: 16.  http://search.proquest.com/docview/249053802?accountid=28034  Abstract: That was before April's correction in the Nasdaq which, as elsewhere, brought the euphoria of the Argentine internet party to an abrupt halt. Mr [Guillermo Bort] and others now estimate that the proportion of Argentina's internet businesses is likely to be substantially smaller. Well, it seems that even after the market called an end to the internet party, there are important factors that make Argentina an attractive place to set up shop - factors that help explain why Argentina has played a larger role in the development of the internet in the region than one would expect, given the size of its economy. One factor is the level of education, which is still far in advance of other many Latin American nations. An internet company looking for technology talent could do far worse than find a home in Argentina, particularly when such brains are in short supply in the US. Following April's Nasdaq correction, many financiers who jumped upon the internet bandwagon in Argentina are now going back to their roots. That has left many internet companies, such as Latinstocks.com, adrift and struggling for survival. The ambitious financial site recently laid off much of its staff after the Argentine investment fund Exxel Group decided to get out of internet investing.  Full text: When internet euphoria swept through Latin America, perhaps nowhere was it felt more strongly than in Argentina. The country quickly racked up the fifth largest number of domain names in the world, and hardly a day seemed to go by when a new company did not open its virtual doors to the public. At the various investor conferences hastily assembled in New York and Miami to cater to the sudden interest in Latin American internet, it seemed that a disproportionate number of attendees were speaking in Argentine accents. One person who noticed the trend was Guillermo Bort, Microsoft's chief of business development for the Southern Cone. To test out his hunch, he ran an analysis of the company's database. Wha"
"t $14 billion, with at least half expected to come from international markets. For now, the bad news is mounting on several fronts. President Fernando de la Rua is struggling to hold his government together following a bribery scandal that forced out top aids and prompted his vice president to resign. Tax rises earlier this year weren't matched by a hoped-for jump in economic growth to pop the country out of its slump. Global prices for wheat and soybeans, which make up nearly half of Argentine exports, have plummeted. Earlier this week, Mr. Machinea unveiled a plan to jump-start the economy that included cutting some corporate taxes. But he admitted the plan's success hinges on whether a Congress fractured by the political upheaval passes the 2001 budget without further tax increases. Brazil appears to be suffering from a perception that its economy is more interlinked with Argentina than it actually is. Argentina sends nearly one-quarter of its exports to Brazil, while Brazil sells just 10% of its exports to Argentina. Still, Argentina's instability complicates efforts to boost regional trade; Brazil and Argentina have been locked in a duel over import tariffs for autos. And it highlights the Achilles' heel in Brazil's recovery from a massive 1999 devaluation: vulnerability to external shocks. Credit: Staff Reporters of The Wall Street Journal  "
" in the currency, provoked by nervousness in Argentina, would limit the room for interest cuts in Brazil. Odair Abate, chief economist at Lloyds Bank in Sao Paulo, said he was revising his initial forecast of 4.5 per cent growth next year, which would probably fall to below 4 per cent. ""The economic fundamentals in Brazil are much better than they were but the currency is coming under pressure because of Argentina, which means that interest rates will probably have to stay unchanged for several months,"" he said. On Wednesday, Arminio Fraga, president of the central bank, said that growth next year, which he had forecast to reach 5 per cent, would be closer to 4.5 per cent because of higher oil prices and volatility in financial markets. ""The external environment is still worrying,"" he told a congressional committee. Brazilian markets have taken a battering as concerns have grown about Argentina's ability to service its debt. The real fell to R$1.982 at one stage yesterday - its lowest level for over a year - before recovering slightly to R$1.972, taking the total de"
"___  Document 84 of 634  Argentine cold gives region the shivers  Author: Catan, Thomas; Chaffin, Joshua; Colitt, Raymond  Publication info: Financial Times [London (UK)] 27 Oct 2000: 03.  http://search.proquest.com/docview/249009877?accountid=28034  Abstract: Brazil's currency sank yesterday to an 11-month low on worries over Argentina, while the Chilean and other regional currencies also suffered. Regional stock markets, already hurt by volatility in US markets, were further affected by concerns over Argentina. The spread on Argentina's debt has widened by around 220 basis points in the past three weeks, a potent indicator of investor concern. The Brazilian and Argentine stock indices have lost nearly 15 of their value this month. The country most concerned about a possible Argentine crisis is its largest neighbour, Brazil. Both countries belong to the South American trading bloc, Mercosur. However, Brazil is far less dependent on the Argentine market for its exports than the other way around. Last year, Argentina accounted for around 12 per cent of Brazilian exports.  Full text: Argentina's political and economic turmoil has begun to reach beyond the country's borders, as regional governments grow concerned that the Argentine crisis could derail their own fragile recoveries. With hostility growing in international capital markets towards Argentina and other emerging markets, investors are worried the country could face a tough time raising the nearly $20bn it needs to finance "
"""There's a certain amount of panic in the market,"" says James Barrineau, who helps manage emerging-market debt at Alliance Capital Management LP in New York. ""The uppermost thing in people's minds is the worst-case scenario: debt restructuring."" The shifting winds come as a bit of a shock for Argentina, which is one of the most frequent emerging-market borrowers and until recently had little trouble persuading foreign mutual-fund and insurance companies to buy its debt. But earlier this week, the government announced it would meet the rest of this year's debt payments with a roughly $1 billion loan from local banks, instead of tapping international markets. Finance Minister Jose Luis Machinea recently sent a chill through bond markets by noting that Argentina could tap an emergency credit line from the International Monetary Fund. ""The fact that they got this $1 billion is positive, but it's a short-term solution,"" says Lacey Gallagher, director of Latin America economics at Credit Suisse First Boston. ""They need to go back to the markets this year to begin prefinancing the 2001 program."" An immediate concern is the first quarter of next year, when Argentina has about $4.6 billion coming due. It can count on local markets for nearly two thirds of that amount, but it needs international investors for the rest. In 2001, Argentina needs to raise abou"
"whether Argentina's economy can resume growth next year has kept the New York-traded shares of Banco Galicia and Banco Frances SA, controlled by Spain's Banco Bilbao Vizcaya Argentaria SA, in the doldrums. Past-due loans at major banks have also been gradually increasing, says Stephen Dreskin, Latin bank analyst at Dresdner Kleinwort Benson. Banco Galicia's Mr. Escasany says many of his corporate customers are trying to negotiate more favorable terms on their loans. He expects past-due loans to swell if economic growth doesn't pick up next year. But Argentina's bad-loan levels are still far below those in Turkey and Taiwan, for instance, where weak banks have exacerbated economic problems. ""People's confidence in the financial system is in pretty good shape,"" says Carlos Perez, head of consumer banking for Citibank NA's Argentina office. Bankers say they grew vigilant after the Mexican crisis, as they watched the number of banks fall from more than 150 to about 100. Early into the recession, Citibank went after deadbeat customers by turning teams of salespeople into loan collectors. Many banks ended their liberal lending policies of years past. Regulators also stepped in to strengthen the system. Argentine banks now have a 20% reserve requirement, higher than the international banking standard. The Central Bank created a $7 billion emergency fund as an additional backup. Banco Galicia's Mr. Escasany estimates that most banks actually have about a 45% reserve on deposits, if the Central Bank fund and other credit lines are taken into account. --- Holding the Debt  Biggest banks in Argentina, listed by percent of total loans outstanding  Provincia de Buenos Aires ................ 8% Banco Galicia ............................ 8% Nacion Argentina ......................... 8% Citibank ................................. 7% Banco Rio ................................ 7% BankBoston ............................... 6% BBV Frances .............................. 6% Banco Hipotecario ........................ 4% Banca Nazionale del Lavoro ............... 3% HSBC ..................................... 3% All others ............................... 41%  Source: Dresdner Kleinwort Benson Credit: Staff Reporter of The Wall Street Journal  "
"___  Document 86 of 650  Argentina Deregulates to Lure Telecom Dollars And Bites the Bullet on Loss of Low-Tech Jobs  Author: By Craig Torres  Publication info: Wall Street Journal , Eastern edition [New York, N.Y] 01 Mar 2000: A18.  http://search.proquest.com/docview/398757702?accountid=28034  Abstract: Argentina will attempt to secure $5 billion in fresh telecommunications investments over the next 18 months through tough deregulation policies that are part of an overall strategy to orient its industrial base toward highly skilled labor. At least one big U.S. company thinks Argentina's highly protected playing field will change in favor of competition: Last week, AT&T Corp., New York, purchased Keytech LD, an Argentine company that will compete in local, national and international long-distance telephone service, as well as Internet, data and fixed wireless services. AT&T bought Keytech for $30 million in cash and stock and plans to invest another $50 million over the next few years, says Crecencio Arcos, a regional vice president at AT&T, who adds, ""The government is welcoming our investment."" Nevertheless, Argentina needs to redefine its strategy to rekindle investors' interest. Mexico, Brazil and Chile have export-oriented growth models based on flexible currency policies. The Argentine peso, on the other hand, is pegged to the dollar and will remain that way ""for a long, long time,"" said Mr. [Jose Luis] Machinea. Lately, the peg has cost Argentina thousands of manufacturing jobs that are migrating to Brazil, where wages are lower, and analysts are wondering just what the government plans to do. ""We are probably facing the moment of truth in trying to decide which are the winners and losers in Argentina,"" said Pedro Lacoste, an economist here. Developing ""a strategy for the future is the No. 1 issue.""  Full text: BUENOS AIRES -- Argentina will attempt to secure $5 billion in fresh telecommunications investments over the next 18 months through tough deregulation policies that are part of an overall strategy to orient its industrial base toward highly skilled labor. ""We are going to have absolute and total deregulation"" in telecommunications, said Finance Minister Jose Luis Machinea. ""We are calling all the international companies."" He added that he ""would love"" to see competition erupt into a price war. In fact, the minister ventures that domestic and international long-distance rates could"
"___  Document 9 of 650  Letters to the Editor: Brazil and Argentina Are Working Together  Publication info: Wall Street Journal , Eastern edition [New York, N.Y] 08 May 2000: A43.  http://search.proquest.com/docview/398709970?accountid=28034  Abstract: I refer to the page-one article ""Argentina Cries Foul as Choice Employers Beat a Path Next Door"" May 2. The story generalizes a few local, prejudiced opinions that have dominated a few sectors of the media in the past, without reflecting the extremely positive developments in the Brazilian-Argentine relationship. Many of those views have nothing to do with the present realities of the integration and were in fact linked to the Argentine economy's competitive problems. Most of the ""issues"" described are in fact not new, and have been satisfactorily dealt with in the recent p"
"ome next year. However, yesterday's auction has cast doubt over its ability to secure affordable financing. ""It has raised a question mark over the government's local financing component, which before the recent deterioration had been taken for granted,"" said Francis Freisinger, senior Latin American economist at Merrill Lynch. The resignation of Vice-President Carlos Alvarez on October 5 raised fears that the governing coalition might come apart. Then, as the situation calmed, Raul Alfonsin, the former president, made comments interpreted by many as a call for a two-year moratorium on foreign debt payments. Mr Alfonsin said he had never intended his comments to be taken seriously, but the damage was done. Domestic interest rates have soared, further damaging Argentina's embattled companies and hurting efforts to lift the economy from its slump. Copyright Financial Times Limited 2000. All Rights Reserved.  "
"per cent in nominal terms to stabilise its debt-to-GDP ratio, or increase the primary surplus by 1.6 per cent of GDP. ""We believe that the extent of the problems currently threatening Argentina is definitely very manageable,"" wrote David Sekiguchi, head of Latin America research at JP Morgan. Fears of a scenario in which Argentina might default also seem overblown, at least in the current environment. The country has a $7.2bn standby loan arrangement with the IMF and a relatively comfortable debt profile - the average maturity of its bonds is 8.5 years. If growth restarts, the pessimism will likely fade away. Should the economy continue to drag along at current growth rates of 1 to 2 per cent, however, the country's accounts could start to deteriorate significantly. A drop in borrowing rates would clearly help. But so far, the market has been fixated on the bad fiscal news, which it fears signals an imminent crisis. One option to break the pattern - which, after all, threatens to become a self-fulfilling prophecy - is to try to shift the market's focus away from the fiscal deficit. Some economists now think that, if explained properly and carried out with IMF approval, the market could be persuaded to give Argentina some room on the fiscal front. For what investors really want to see in Argentina - the thinking goes - is growth. ""The government has been giving priority to the fiscal adjustment over the economy,"" wrote Carlos Janada, an economist at Morgan Stanley Dean Witter. ""Another fiscal package would marginally help the fiscal finances, but would hurt the economy even more. It is probable that the time has come to gain more room on the fiscal front by expanding the IMF fiscal target."" That is exactly what Jose Luis Machinea, economy minister, did this month, lifting the target for the federal deficit this year from $4.7bn to $5.3bn. In the new budget, Mr Machinea also introduced $700m in spending cuts, and vowed to maintain strict austerity measures. Many analysts now believe that Argentina should get some breathing space to cut taxes and to get the economy moving. So neither dollarisation nor devaluation are the real issues, says Richard Madigan, director of Latin American investments at Offitbank. The debate on Argentina should now centre on ""the administration's willingness to accept (well-earned and deserved) support - and breathing space - from the multilaterals, to work itself out of its current economic malaise"". Copyright Financial Times Limited 2000. All Rights Reserved.  "
"rm Pedro Lacoste & Associates, ""this is by far the boldest economic reform taken on by the new government."" It is also one of the most urgent. Dozens of Argentine plants are already migrating across the border to Brazil to take advantage of lower wage costs. Federico Poli, an adviser to the Union Industrial Argentina, a lobbying group for private-sector businesses, says the bill ""will help modernize some contracts."" But he adds: ""Nobody is thinking of cutting salaries because this would damage the domestic market."" Mr. de la Rua was applauded for pushing an austere budget through Congress recently. But the escalating battle with the unions this week points to a policy gap. The new president hasn't articulated how painful measures such as budget cuts and weakening job security fit into his broader campaign to make Argentina more economically competitive. Union leaders also complain that the government hasn't done enough to foment competition among telecommunications companies and other sectors that influence business costs in Argentina. If these other costs were in line with international market prices, ""Argentina wouldn't only compete, it would set the pace,"" says Augusto Varas, head of the metalworkers' union in Cordoba, home to much of Argentina's heavy industries. Credit: Staff Reporter of The Wall Street Journal  "
"___  Document 633 of 700  Argentina unveils $39.7bn aid plan  Author: Catan, Thomas  Publication info: Financial Times [London (UK)] 19 Dec 2000: 14.  http://search.proquest.com/docview/248942213?accountid=28034  Abstract: Argentina yesterday unveiled an international package of financial aid worth $39.7bn (£27bn), designed to revive the economy and quash fears it could default on its foreign debt. Like other emerging markets, Argentina's economy fell into a deep recession in 1999, contracting by more than 3 per cent. But unlike other regional economies, Argentina has so far been unable to pull itself out. The economy is expected to grow by less than 0.5 per cent this year. A senior government official said that Argentina would draw $2.1bn from its existing IMF loan agreement ""in the next few days"", followed by up to $3bn in January, after the new aid is agreed by the IMF board. Today, Argentine finance officials will conduct a conference call to explain the aid package to investors around the world.  Full text: Argentina yesterday unveiled an international package of financial aid worth $39.7bn (£27bn), designed to revive the economy and quash fears it could default on its foreign debt. Argentina accounts for up to a quarter of tradeable emerging market debt worldwide, and there had been concern amongst inter"
"aling a further blow to the ailing economy. Though not unexpected in itself, the timing of the move came as a big setback for the government, which is working feverishly to pass a raft of emergency economic measures to restore investor confidence and open the way for a multi-billion dollar international financial rescue package. The Argentine markets had been rallying since Friday, when the government announced the new measures and the International Monetary Fund confirmed it was putting together a package of aid. The government's initiative has already run into problems from the opposition Peronist governors, whose support is critical for the measur"
"___  Document 442 of 700  Argentine Bailout of Almost $40 Billion Unveiled --- Package Led by IMF Brings Investors Relief But Leaves Doubts  Author: By Pamela Druckerman  Publication info: Wall Street Journal , Eastern edition [New York, N.Y] 19 Dec 2000: A.17.  http://search.proquest.com/docview/398718388?accountid=28034  Abstract: Though pleased by the jumbo package, foreign investors were quick to note that Argentina's problems extend beyond its total debt of some $120 billion. They say the country's foremost need is to get the economy growing again after two years of recession. Reflecting this ambivalence, Argentina's battered stock and bond markets barely budged in the wake of the announcement. Argentina has faced a raft of economic problems, including concern about a slowing U.S. economy, which analysts say makes U.S. investors warier of sending their money abroad. And the country remains hard hit by last year's currency devaluation in Brazil; the devaluation prompted many Argentine manufacturers to shift production to its neighbor. Further, through Argentina's convertibility system, the country's currency is fixed to the U.S. dollar, and most of Argentina's exports have become less competitive because of the dollar's strength. In Washington, Treasury Secretary Lawrence Summers underscored the importance of these domestic policies to Argentina's recovery. ""We encourage the government of Argentina to fully implement its enhanced commitments under the new program, which will help position Argentina for a restoration of confidence and renewed growth.""  Full text: BUENOS AIRES -- Argentina unveiled a $39.7 billion package of emergency credits from the International Monetary Fund and other lenders that should help it avoid a short-term-debt crisis, but it isn't cle"
"___  Document 300 of 634  Argentine economy wins IMF praise amid bond issue  Author: Warn, Ken  Publication info: Financial Times [London (UK)] 12 July 2000: 11.  http://search.proquest.com/docview/248853765?accountid=28034  Abstract: ""There has been a significant change in the atmosphere in Argentina in recent weeks,"" said Stanley Fischer, IMF first deputy managing director. The change was ""largely based on tax receipts coming in much better than expected,"" he said. Argentina on Monday announced a Treasury surplus of $831.9m (£5510m) for June, against a deficit of $119.9m in the same period last year, helped by a jump in tax revenues.  Full text: The International Monetary Fund has underlined an apparent rise in optimism over Argentina's economy - just "
"he country issued its first long-term global bond of more than $1 billion since 1997. The $1.25 billion 20-year bond was priced to yield 12.08%, or 5.41 percentage points over the U.S. Treasury issue of similar maturity. Rachel Hines, a managing director at J.P. Morgan & Co., which jointly led the bond offer with Citigroup Inc.'s Salomon Smith Barney, said the bond was oversubscribed and distributed broadly among U.S. and international accounts. Argentina's economic team must roll over $13 billion in debt this year and finance a budget deficit of about $4.5 billion. Mr. de la Rua made a reform of Argentina's sloppy fiscal accounts his top priority shortly after he took office in December, calling the deficit ""our worst enemy."" His team pushed a budget package through Congress that contained spending cuts and tax increases. Most analysts believe the fiscal deficit target of $4.5 billion is within reach, but only if Argentina can grow more than 3% this year following a deep recession last year. Industrial production is rebounding, but Pedro Lacoste, an independent economist here, says this reflects idiosyncrasies of the automobile industry more than overall econ"
"a marathon session. Final item-by-item approval was expected later in the day. The swift passage of the budget is expected to prompt the International Monetary Fund to provide details of the aid package it has been assembling for the past month. The announcement, which investors are keenly awaiting, is expected to happen in Washington during the first half of next week. Formal announcement of the aid package will come as a huge relief to many in the market, who had feared that Argentina could default on its foreign debt. Economists believe the IMF-led package will underpin a rally in emerging market debt prices, which had been hit by Argentine and other global concerns in recent weeks. Argentina accounts for up to a quarter of tradeable emerging market debt, and international financial officials are fearful that a potential default could spark a renewed round of financial contagion around the world. Already, Argentina's neighbours such as Brazil and Chile have suffered from worries over the country; Brazil trimmed its growth forecast partly as a result of Argentina's troubles. With the rescue package secured, the possibility of default by Argentina has now receded. However, the question remains whether the country, which has been unable to pull itself out of recession for more than two years, can resume"
"s eager to increase the funding available under the IMF programme, possibly up to $5bn. However, prospects for a larger support package, such as a $10bn package mooted last year, has slipped off the agenda. Winning the IMF's imprimatur is essential for Argentina to rebuild investor confidence and bridge its financing gap for this year, estimated at $17.5bn or more. Under plans announced last month, Argentina aims to raise almost $10bn in the international capital markets this year with a mixture of dollar, yen and euro issues. Argentina defied market turbulence yesterday and successfully launched a 7-year {XEU}750m bond issue. But prolonged volatility following Tuesday's sharp falls in international markets could complicate the financing task. Last week, the government pushed a package of tax increases through Congress as part of a strategy to reduce this year's fiscal deficit to $4.5bn, or about 1.5 per cent of gross domestic product. Last year's deficit ballooned to over $6bn as recession eroded tax revenues. However, the government is almost certain to se"
"1m and valued the company at more than $1bn, the same size as Argentina's biggest industrial companies. Impsat raised some $244m in January in an IPO that initially valued the company at more than $2bn, and Patagon agreed to sell 75 per cent of its business to Santander for $529m a matter of days before the Nasdaq fell sharply in mid-April. El Sitio and Patagon.com in particular have inspired imitators. At one stage earlier this year, Mr Korn's office was processing as many as six applications for funds each week and dozens of companies were able to raise first round funding of between $4m and $10m from venture capitalists. The shift in market sentiment in April has made matters more complicated, however, and some of the newcomers could find the going tougher. Mr Korn says venture capitalists are offering only between $2m and $5m for first round start-ups and deals are taking much longer to agree. And, with money less easy to come by, the reality of the limited size of the domestic market is looming large. According to one executive, the recession has depressed the size of Argentina's advertising revenues to about $1.5bn. On the basis of US experience only 2 per cent of this amount - between $7m and $8m - will be available to internet companies, forcing many to look overseas. Argentine companies have already experienced some success as exporters - they produce 50 per cent of sites with Spanish language content. But competition is becoming much tougher as well capitalised companies - such as Terra, in which Spain's Telefonica has a majority share, and UOL of Brazil - begin to make inroads. Already some start-ups have begun to hit difficulties. Roger Heale, equity analyst with Raymond James, the US financial services company, says that the internet boom could prove to be double-edged. ""It showed to investors that Argentines had its share of entrepreneurs but that they were basically shackled by a lack of capital. ""But at the same time the problems now being experienced allow the banks to say that they were right not to back these ventures in the first place."" Copyright Financial Times Limited 2000. All Rights Reserved.  "
"___  Document 29 of 634  S&P lowers rating on Argentina  Author: Catan, Thomas  Publication info: Financial Times [London (UK)] 15 Nov 2000: 48.  http://search.proquest.com/docview/248862355?accountid=28034  Abstract: Standard & Poors, the international credit ratings agency, yesterday downgraded Argentina's foreign debt rating from BB to BB-, dealing a further blow to the ailing economy. Standard & Poors move comes only seven weeks after it surprised pessimistic markets by reaffirming its rating on Argentina.  Full text: Standard & Poors, the international credit ratings agency, yesterday downgraded Argentina's foreign debt rating from BB to BB-, de"
2?accountid=28034  Abstract: None available.  Full text: Argentine economy recovering Argentina's economy is shaking off the effects of recent tax rises and Brazil's 
"rs (both inherited from the Menem presidency), Argentines have been hit hard by Mr. de la Rua's reforms. They demonstrated their bitterness in massive and often violent strikes and demonstrations, in which the dominant theme has been a repudiation of economic liberalization. Political analysts generally agree that after Mr. de la Rua's latest ajuste, which included an extremely unpopular public employee salary cut, the president now has run out of room to politically maneuver until the economy begins recording. Dropping tariffs would surely bolster the president's popularity in U.S. business circles and might make sense if it could be limited to the rational vacuum of Ms. O'Grady's economic analysis. But in light of Argentina's current social instability and highly charged political arena, such a move could very well spark catastrophic consequences. Reed Lindsay Council on Hemispheric Affairs Washington  "
"omic growth. Mr. Lacoste, who is also head of a Buenos Aires economics firm that bears his name, argues that ""if you look at leading indicators such as bank credit, supermarket sales and tax collection, the recovery is not so clear."" Mr. Lacoste forecasts 2.5% economic growth this year and a fiscal deficit of $5.5 billion to $6 billion. While the size of yesterday's issue reflects rising confidence, Argentina's overall debt levels continue to scare some investors, and there are long-term concerns about the country's competitiveness, especially compared with that of Brazil, which devalued its currency a year ago. Mr. de la Rua is now launching a series of labor-reform proposals to reduce costs for local industries. The finance ministry has been testing market demand with a number of issues, but yesterday's new bond was the largest since the country sold some $2 billion in new debt in 1997. Julio Dreizzen, Argentina's undersecretary of finance, said that with yesterday's bond the government will have accomplished nearly 20% of its financing needs for this year, with various issues totaling more than $3 billion. Credit: Staff Reporter of The Wall Street Journal  "
"ose 15.4 per cent from a year ago to a record $4.82bn (£3.19bn), 11 per cent ahead of May's total. Income tax alone rose 69.9 per cent from last year to $1.36bn, according to Economy Ministry figures released on Monday night. The increase in revenues would probably help Argentina beat its first-half fiscal deficit targets agreed with the International Monetary Fund, said Mario Vicens, treasury secretary, but analysts said the figures had been swollen by one-off measures such as an amnesty for contributors with tax arrears, and by bringing some payments forward. The centre-left Alliance government has been struggling to shrink the fiscal deficit from $7.1bn in 1999 to a targeted $4.7bn this year. But a round of tax rises and spending cuts have led to opposition accusations that the government is choking off the economic reco"
"s last month by maintaining its rating on Argentina, which it said had shown resilience. Recent analyses suggest it would not need big adjustments to its accounts to put its debt load back on the path to sustainability, assuming the economy reaches 3 per cent growth. The biggest worries are political. The resignation of vice-president Carlos Alvarez has thrown into question the future of the governing coalition. Mr Alvarez, who led the junior partner in the coalition, had made a crusade of clearing up a simmering bribery scandal in the senate. On Friday, he resigned to protest a cabinet reshuffle by President Fernando de la Rua that left in place two ministers implicated in the alleged bribing of senators. For now, Mr Alvarez's Frepaso party and Mr De la Rua's Radical party promise to keep working together but investors will be watching to see how this potentially volatile situation develops. For investors, the danger is not that the government will fall, but that the president may be left without enough supporters to pass important legislation. If that happened, reform efforts would stall, endangering Argentina's fragile recovery. The plus side of all of this is that Mr De la Rua now has a far more unified cabinet on economic matters and a strengthened economy minister, Jose Luis Machinea. An optimist might further say that over the long term, the current focus on the corrupt practices of the past might lead to a more transparent and mature political system. For now, investors see little reason to take a chance on Argentina, and no shortage of other countries on which to place their bets. Copyright Financial Times Limited 2000. All Rights Reserved.  "
"___  Document 699 of 700  Argentina LEX COLUMN  Publication info: Financial Times [London (UK)] 22 Nov 2000: 24.  http://search.proquest.com/docview/248835066?accountid=28034  Abstract: With more than a year's financing assured, Argentina's debt suddenly looks very cheap. Logically, its sovereign risk premium should now fall sharply, lowering interest rates, boosting confidence and helping to kick-start a somnolent economy. That outcome, however, will require Argentina's politicians, of all colours, to behave responsibly - or the country will find itself in the same frightening position a year hence.  Full text: Argentina After a few worrying weeks, Argentina has pulled back from the brink of an economic crisis. The government's agr"