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Thu, Dec 27, 2001 - Page 19 News List

Uruguayans worry neighbor's devaluation will hit home

If Argentina allows the peso to fall, Uruguay will follow suit and that will increase the burden for those repaying dollar-denominated debts

BLOOMBERG , MONTEVIDEO

Since November, bookings for hotels in Punta del Este, an Atlantic coast resort 160km from Montevideo, have been "very few," said Mario Amestoy, president of the Uruguayan Tourist Chamber and owner of the Arapey Thermal Oasis, a hot springs resort in northwest Uruguay.

Graciela Fernandez Meijide, a former deputy cabinet chief in de la Rua's government, spent last week in Punta del Este but said events back home made it impossible to enjoy her vacation.

"We spent most of the time watching what was happening on television," said Fernandez Meijide, who was waiting for the next ferry to cross the River Plate, which separates the two countries, and return home Argentina. "It was horrible to see."

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