Uruguay on Sunday received a short-term loan of up to $1.5bn from the US and imposed limited restrictions on bank withdrawals in an effort to avert a collapse of its once-vaunted financial system.
Chilean President Ricardo Lagos has announced that he would not travel to Bolivia to attend presidential inauguration ceremonies because of a simmering internal conflict there over the Bolivian government's tentative plans to export natural gas to North America via Chile
Perhaps because of its size, tiny Uruguay spends an awful lot of its time being compared with other countries.
For its solid financial system and uneventful political scene Uruguay was long referred to as the Switzerland of South America. Equally hopeful, its finest beach resort, Punta del Este, has been described as the continent's own Saint-Tropez.
In the eve of his tour of Mercosur member countries, US Treasury Secretary Paul O'Neill personally apologized to Brazil, Argentina and Uruguay in three separate statements, following last week's remarks when he said that foreign aid to these countries ended in secret Swiss accounts.
Fisheries Show in Uruguay; Whales are back;
Chile, Fuel prices hike; Bullish unemployment;Latinamerica:
Uruguayan banks closed; O'Neill apologizes to Brazil; Agriculture out again?; Brazil appeals to IMF
Strong financial support for the beleaguered Uruguayan banking system was announced Wednesday morning by the Uruguayan Economy Minister Alejandro Atchugarry following successful talks in Washington with the International Monetary Fund and the US Treasury that committed 1,5 billion US dollars in immediate assistance. The 1,5 billion US dollars check includes a 700 million US dollars advance from an IMF rescue package already agreed, and another 800 million US dollars from the United States Treasury
Former Argentine dictator Leopoldo Galtieri will be released from jail and held under house arrest while a judge investigates if he played any role in the torture and execution of 22 guerrillas in 1980.
Two Chilean lawmakers whose constituents are mostly comprised of rural farmers have warned that a free trade deal with the United States would ruin the country's agriculture sector and endanger more than a million jobs.
South American leaders ended a two-day summit Saturday with an agreement to strengthen regional cooperation to better negotiate with the United States a free-trade zone for the hemisphere.