Strengthened by a crucial expression of support from Washington, Argentine President Eduardo Duhalde outlined an economic plan yesterday that reflects IMF calls for austerity and discipline.
The policies largely reflect recommendations made by the IMF ahead of negotiations on a major financial aid package Duhalde hopes will help solve Argentina's crippling economic crisis.
Duhalde received a strong expression of support from Bush, and in turn stressed US assistance would be crucial.
The statements contrasted strongly with the perceived coolness that marked bilateral relations in the first days after Duhalde took office on Jan. 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 US$141 billion 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 US$15 billion and US$20 billion in international financial aid.
The funds would be largely used to boost currency reserves, now at about US$14.9 billion, so the central bank can defend the peso.
The Argentine currency lost about 50 percent of its value since the government lifted its parity with the dollar earlier this month.
When it floated the currency, the government also adopted a fixed dollar rate of 1.40 pesos for certain operations, but Duhalde said Saturday the set rate eventually would be scrapped.
But the government will maintain a highly unpopular measure that bars Argentines from withdrawing more than 1,500 pesos (US$750) a month from their accounts.
Duhalde said he said he was in broad agreement with Bush on economic policy.
"But the plan will need the support of the United States," he told Bush, according to a partial transcript of Friday's telephone conversation published by the Clarin daily.
Bush, in turn, said he was fully aware of the magnitude of the problem, extending US support to Argentina.
Duhalde said Saturday the program would protect the interest of Argentine business leaders and workers as well as promote the country's industry.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College