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At the beginning of the 21st century the Argentine government
defaulted on its debt and most banks became technically
bankrupt. Financial and human flight was rampant. Argentina
needed to import a whole monetary system, a banking system
and saving system subject to the world's best supervision.
Speculation that the government might abandon the peso
was rampant. As a consequence of the exchange-rate risk
created, interest rates soared. Those problems have put
an otherwise sound banking system under stress as deposits
and reserves have fallen. The resulting fall in reserves
has reduced bank lending, worsening Argentina's ongoing
recession.
The Argentine government is now in the process of signing
IMF structural adjustment agreements, which are aimed at
resuscitating the country’s economy, though, doubtless,
these procedures will do little for individual citizens,
who have suffered most from the recession.
Press
IPS-Inter Press Service
ARGENTINA:
REPARATIONS FOR BANKS, BUT NOT THE SAVERS
Marcela Valente
March 4, 2003
The Argentinean government is
planning to compensate banks for losses suffered as a result
of the financial crises that erupted in December 2001. Bank
customers were also severely hurt by the collapse and they
demand reparations as well. The Minister of Economy singed
an agreement with the IMF that the state must compensate
the banking system with more than $15 billion, while nothing
has been allocated to the Argentinean population, 54% of
which lives in poverty. The government says that indemnifying
the banking system is the only way to achieve a lasting
economic reactivation.
Business News Americas-English
Industrial
Azul to open Velox branches in Feb.
January 7, 2003
Argentine bank El Nuevo Banco
Industrial de Azul will reopen the 14 branches it took over
last year from suspended local bank, Banco Velox. Industrial
de Azul will keep 213 of the 580 employees that previously
worked for Velox.
Legislation
Banking
Law
Contact
Regulatory contact
Banco Central de la Republica Argentina
Reconquista 266 Buenos Aires Argentina
Tel 54 1 348 3500
Fax 54 1 345 4860 and 54 114 348 3955
Web: http://www.bcra.gov.ar/
“The Banco Central monitors the proper functioning
of financial markets and applies the Law on Financial Institutions.
It carries out this function through an administratively
separate Superintendency of Financial and Foreign Exchange
Institutions, which reports directly to the governor of
the central bank.”
Experience:
The agency has confirmed that it considers public comments,
for example one submitted in connection with Citigroup –
Banamex
Highlights
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Argentina