The recent tax-info exchange agreement reached between Argentina and Uruguay will make many investors in the Uruguayan financial system take their deposits back to “safes” or “mattresses” in Argentina, warned several economists during a conference on the Argentine economy prospects and its influence on neighbouring Uruguay.
Argentine provinces are falling back in paying salaries and honouring debts as they face a shortage of cash and almost record rates for issuing bonds in money markets, reports Buenos Aires financial press.
In what would be his last speech as part of the organization, Chief Economist and Senior Vice President of the World Bank Justin Lin held a conference at the UN’s Economic Commission for Latin American and the Caribbean (ECLAC) in Santiago de Chile.
Uruguay’s state-owned power company UTE, is spending over seven million dollars per day to contain the deficit originated in poor rainfall that threatens production from the country’s four main hydroelectric generating plants.
Argentina could rapidly become the “Greece of Latin America” given the trade restrictions it has imposed born out of the lack of sufficient hard currency to face its international commitments, according to Chile’s Manufacturing and Services Exporters Association, Roberto Fantuzzi.
The UK will be exempt from a new European bailout agreement between Euro-zone countries according to a EU Treaty Amendment Bill introduced to the House of Lords this week by Foreign office minister Lord Howell.
Paraguay’s meat exports totalled 285 million dollars in the first four months of the year, which makes it the second best four-months for the industry in recent years, said German Ruiz, head of the country’s Rural Association.
After a day of intense trading in the ‘blue’ (informal) market for US dollars which reached a new high of 5.50 Pesos, Argentine President Cristina Fernández assured on Tuesday evening that there will be no economic ‘shocks’ or a ‘system of multiple exchange rates’ as “has been rumoured during the whole day”.
Uruguay called on Argentina to begin the price bidding process for the delayed dredging of a River Plate canal and revealed it was already monitoring the Uruguayan side of a joint commission responsible for deciding on the final contract and which has come under suspicion of corruption.
Despite their differences over how to drag Europe out of its current economic swamp, German and French leaders pledged to join efforts in reinvigorating growth in the continent during their first meeting on Tuesday.