Argentine savers have withdrawn more than US $ 400 million from their bank accounts this week amid growing rumours that the Central Bank (BCRA) was considering a new corralito, like the one implemented exactly 20 years ago in the days leading up to the resignation of President Fernando de la Rúa.Add your comment!
It happened in 1989. It happened in 2002. Argentines who are old enough to remember do not want to go through it again.
By Carmen Reinhart (*) Argentina recently emerged from nearly 15 years of the most litigious sovereign default in modern times, if not ever. Now it has the opportunity to reenter the global financial system and build a more stable and prosperous future. It is a chance that the country must be careful not to squander.
While addressing the nation from the Buenos Aires stock exchange floor, Argentine President Cristina Fernández strongly defended the policy of drastically cutting debts, which guarantees “greater independence”, and of stimulating the economy because only with resources can debts be paid, “the dead don’t pay debts”.
Argentina is ready to cancel next Friday a bond issue which was handed out to residents with bank deposits victims of the so called “corralito” (paddock) in 2002 when the collapse of the Argentine economy and financial system.