European banks, stung by Argentina's economic collapse, are cutting back loans to other Latin American nations, indicating the lenders' skittishness over Argentina may be spreading in the region, the World Bank said.
A curb in lending by banks such as Santander Central Hispano SA, Spain's largest, raises the risk that countries such as Brazil and Chile may experience "a violent shift" similar to 1997, when Japanese banks helped spread Thailand's troubles to Malaysia and South Korea by cutting off loans, a World Bank report said.
"The Argentine crisis is going to permanently change banks' outlook toward emerging-market economies," said Christian Stracke, the head of emerging-markets fixed-income research at Creditsights Inc, a credit research firm in New York.
The bank's analysis is the first to officially find signs of contagion from Argentina since the nation's December default on US$141 billion in debt.
The US Treasury and IMF have said only Uruguay has been hurt in the fallout.
The spread of Argentina's problems may make it more difficult for the US and IMF to continue to withhold aid as Argentina struggles to make policy changes the fund has demanded.
Excluding Argentina, global bank lending to emerging-market economies for the first three months of this year is less than half that of the 2001 average, the World Bank said. European banks such as Credit Agricole SA, France's second largest, account for half those loans.
SECRET OUT: Minister of Health and Welfare Chen Shih-chung yesterday accidentally revealed that the infections occurred at the ministry’s Taoyuan General Hospital The Central Epidemic Command Center (CECC) yesterday reported the fifth COVID-19 case in a cluster infection at a Taoyuan hospital, where four other medical workers were confirmed to have been infected over the past week. The latest case is a nurse who had tested negative on Tuesday last week, Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the CECC, told a news conference. However, on Thursday, she developed symptoms, such as nasal congestion and a cough, and a second test yesterday found that she was infected, Chen said. She is the head nurse of a ward where two
VIGILANCE: While two of the cases are family members of a nurse, there is no sign of community spread and the source of infection is identifiable, the CECC said The Central Epidemic Command Center (CECC) yesterday reported four new domestic COVID-19 cases associated with a cluster infection at a Taoyuan hospital. Since the first case was identified on Tuesday last week, five healthcare workers — two doctors and three nurses — at the Ministry of Health and Welfare’s Taoyuan General Hospital have tested positive for the virus. Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center, said that two of the four new cases are the husband and daughter of a nurse (case No. 863) who had earlier been confirmed to have COVID-19. The husband (case No. 864)
PILLARS OF DEMOCRACY: US Ambassador to the UN Kelly Craft posted online after the virtual meeting that Taiwan should be able to share its successes in global venues President Tsai Ing-wen (蔡英文) and US Ambassador to the UN Kelly Craft yesterday held a virtual meeting, during which Tsai described Taiwan as a “force for good” that deserves a place on the world stage, while Craft reaffirmed Washington’s support for Taiwan’s international participation. The virtual talk was held at about 11am, after Craft’s trip to Taiwan was abruptly canceled. She had been scheduled to meet with Tsai in person at the Presidential Office in Taipei yesterday morning as part of a three-day visit to Taiwan. On Tuesday, the US Department of State canceled all of its planned trips, citing a need
Don Quijote, the biggest discount store in Japan, is opening its first store in Taiwan today. The three-story Don Don Donki store in Taipei’s Ximending (西門町) area, which operates 24 hours a day, has already created 400 jobs, the Ministry of Economic Affairs (MOEA) said in a press release. Many Taiwanese, including Taipei Deputy Mayor Vivian Huang (黃珊珊), consider a trip to Don Quijote an essential stop in Japan. “I have been to Don Quijote at least 10 times myself,” Huang said yesterday at a news conference announcing the store’s opening. “They are rendering an important service, because we cannot travel
RSS