Brad Budsberg

 

“Argentina Says Economy, Bank Chiefs Resigned,”

Wall Street Journal, 2/19/85

 

Main Point:

As the debt crisis takes it punishment on countries such as Argentina, strict IMF requirements for emergency loans are causing expected as well as unexpected events to occur.

 

Summary:

As Argentina tries to bring its economy under control, two main figures resign as Argentina makes attempts to smooth over relations with the IMF along with business and labor unions.  This is also an opportunity for the country to adhere more strictly to the IMF’s austerity measures.

 

Resignation:

Two prime figures, Argentine Economy Minister Bernardo Grinspun and central bank president Enrique Garcia Vazquez, resigned with no official reason but assumptions are made that it is all in part of a government attempt to inject new leadership into the country’s faltering economic austerity plan.

 

Reactions:

The United States banks are seeing a new uncertainty in Argentina’s ability to stabilize its economy.  As the country is trying to control business and union leaders, it is also trying to work out a stricter austerity plan in accordance to the IMF requirements.  Argentina is also working to complete negotiations for an emergency financial package to the situation.  As banks begin turning Argentine loans to non-accrual status, credit ratings are being lifted from substandard because of the agreement with the IMF.