Argentina imposes restrictions on cash flows

Описание: (3 Dec 2001)

1. Various shots of city streets
2. Wide shot exterior of Bank Boston
3. Various shots of newspaper headlines
4. SOUNDBITE: (Spanish) Jorge Davis, Buenos Aires resident:
"As soon as people get paid they are not going to deposit their money in the bank, there will be distrust."
5. Man walking out of bank
6. Zoom out of from bank sign, 'Banco de Argentina'
7. SOUNDBITE: (Spanish) Milta de Lelis, Buenos Aires resident:
"This affects us all, I think it is outrageous, they are using our money which is our monthly salary - This is evidently a disaster."
8. Wide shot of street
9. Mid shot of a bank security car
10. SOUNDBITE: (Spanish) Hugo Salomone, Buenos Aires resident:
"I'm limited from withdrawing my money - I'll have to see how I can deal with it."
Question: "Does it benefit the country?"
Answer: "I guess it does, but I do not know how they are going to pay the 'Coimas' (government bonds). This is a problem that has to be resolved by them (the government). What to do with the illegal money? Companies are going to have difficulties and limitations. For two or three years we'll undergo a big recession."
11. Various of street scenes

STORYLINE:

Argentina's government is barring people from withdrawing more than 250 U-S dollars in cash per week from their bank accounts.

The decision, effective from Monday, is an attempt at preventing a nationwide run on banks and stopping an economic collapse.

Long lines formed all weekend at cash machines as Argentines tried to get their money out before the restrictions came into effect.

More than 700 (M) million U-S dollars were withdrawn from accounts on Friday alone by citizens scared about their country's economic future.

Finance Minister Domingo Cavallo said the restrictions were needed to help stave off speculative attacks from investors.

Cavallo said some investors want to force a devaluation of the nation's currency, the peso, and push Argentina into defaulting on its 132 (B) billion U-S dollar debt.

The Argentine peso has been pegged one-to-one with the dollar since 1991, but the system is based on having the same number of pesos in circulation as dollars in reserve.

Heavy withdrawals of dollars throw the currency peg off balance and threaten the value of the peso.

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