AFP. 20 January 2002. Argentine president outlines economic plan reflecting IMF remedies.
BUENOS AIRES -- Argentine President Eduardo Duhalde Saturday outlined an economic plan that reflects IMF calls for austerity and discipline. The policies largely reflect recommendations made by the International Monetary Fund (IMF) and US President George W. Bush ahead of negotiations on a major financial aid package Duhalde hopes will help solve Argentina's crippling economic crisis. The statements contrasted strongly with the perceived coolness that marked bilateral relations in the first days after Duhalde took office on January 1 following the collapse of two governments last week. Foreign Minister Jorge Remes Lenicov was due to travel to Washington later in the month to present what Duhalde said would be a sustainable economic plan. Duhalde said his government would maintain strict monetary and fiscal discipline and adopt an austere budget, policies the IMF earlier indicated were essential if Argentina is to obtain international financial aid. "The budget we are presenting is a truly austere budget," Duhalde said in an interview with Argentine news agencies. The Pagina 12 daily said the draft 2002 budget that is to be presented to Congress in the coming days slashes spending by a whopping eight billion dollars. Duhalde said the plan does not provide for servicing of Argentina's 141 billion-dollar debt, payment of which was suspended last month. "If we did include it, nobody would believe us," he said. He said the budget would set limits on the issue of currency. "A country that can issue money in an irresponsible manner falls into hyperinflation," he said, noting this would have disastrous consequences for crisis-struck Argentina. The president also said his government would take measures to halt rampant tax evasion. Another key element of the plan involves converting all dollar-denominated credits, debts and accounts into pesos. The government hopes the plan will pave the way for the negotiation of between 15 billion and 20 billion dollars in international financial aid [read: debt]. [N.B.] The government will maintain a highly unpopular measure that bars Argentines from withdrawing more than 1,500 pesos (750 dollars) a month from their accounts. Duhalde said he said he was in broad agreement with Bush on economic policy. . . . . . . . . . . . . . . . . . . . . . . . Barry Stoller http://groups.yahoo.com/group/ProletarianNews
