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Argentina's riot

 
 
pacha perplexa
21:14 / 20.12.01
I know this has nothing to do with 11/9, but it's amazing the way they protested against IMF, government and corporations:


At least 22 people have died and several hundred have been injured in Argentina as anti-government demonstrations escalated due to an economic crisis that has crippled the nation. On Wednesday, a nationwide strike led to the resignation of the Finance Minister who oversaw the liberalization of the national economy. Argentina now faces $155 billion debt and a soaring unemployment level, in part due to its implementation of International Monetary Fund policies.

Looting was reported today in many parts of Argentina while confrontations were reported in La Plata and Cordoba. The government has declared a state of siege, thereby suspending all constitutional rights, including the right to assemble. Police forces have been called in and it is rumoured that the army might be preparing to aid in the repression of the people. Businesses are closing for fear of more looting and more actions like those seen earlier this week are planned by them. Protesters have stormed supermarkets in 'food riots' in direct action against IMF imposed austerity measures. The people in Argentina look out of their windows to see their country fall into chaos.

UPDATE: Argentina's President Fernando De la Rua resigned on Thursday after two years in office, fleeing from the government palace in a helicopter to escape throngs of protesters who were clashing with riot police outside.


This was Indymedia

BBC:


Argentina has been in a recession for almost four years, and unemployment has risen to almost 20%.

Food handouts - an attempt to quell unrest

Earlier this month, the IMF refused Argentina a further $1.3bn in standby loans, unless it balanced its budget for the year 2002.

Mr Cavallo had put forward budget proposals slashing government spending by 20% - but only by cutting public sector wages and reducing pension provisions.

Economist Roger Nightingale blames the government's economic mismanagement for the crisis.

"Argentina was the only country that went demonically down the road of linking currencies," he said.



The IMF was "instrumental" in engineering Argentina's financial collapse because of irresponsible lending which "exacerbated" its foreign debt problem, foreign creditors have claimed.
Argentine people have seen their pensions taken away, unemployment soar, inflation jump and their industries decimated.

"The IMF... were instrumental in engineering this, lending an additional huge amount of money this year," Hans Humes, of Van Eck Emerging Market Funds and spokesman for a New York-based committee of Argentina's foreign creditors told the BBC's Today Programme.

Foreign creditors expect the collapse of the government to delay a restructuring of the nation's $132bn (£91.2bn) public debt and cause a default.

One rating agency said it will cost private investors half of the $97bn (£66.9bn) face value of their claims.

The International Monetary Fund decided two weeks ago to cut Argentina's $22bn credit line but denies it is to blame for the country's troubles.

Debt swap unlikely

Argentine President Fernando de la Rua resigned on Thursday as violence engulfed the country.

The widespread riots and looting were in response to more than four years of harsh austerity policies demanded by the IMF to repay the debt.

President de la Rua was only halfway through his four-year term and quit just hours after economy minister Domingo Cavallo.

The resignations mean the country is unlikely to be able make its planned 20 January debt swap.

By swapping out of current bonds and into new low interest bearing loans, the government had hoped to cut its heavy debt servicing payments.

IMF blamed

"They (IMF) were really the last lenders to Argentina and have exacerbated the debt overhanging the country," said Mr Humes, adding the IMF should take its share of losses.

"This is a market where you make your own risk estimates and that should apply to the private sector as groups like the IMF who are way over their budget for lending to Argentina," he said.

"It's going to cut across everybody, banks, insurers, pension funds, every financial institution would have some exposure," Mr Hume said.

Default rating

Fitch, the credit ratings agency, said on Thursday that Argentina is likely to default on about $97bn of outstanding debt owed to private creditors.

The agency also said it did not believe that Argentina's currency peg, under which one peso is convertible into one US dollar, was viable, indicating a devaluation is the only option.

"The combination of a disorderly default and devaluation implies that creditors will ultimately be forced to write off at least 50% of the face value of their claims on the Argentine government," Fitch said.
 
  
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