Argentina to Freeze Dollar Term Deposits
Argentina will ban withdrawals of dollar term deposits until 2003 to avert a collapse of the banking system, Todo Noticias reported. The decision will affect about $23 billion in deposits, economists said.
The government, which has ordered banks to convert dollar-denominated loans totaling as much as $100,000 into pesos to help individuals cope with a devaluation of the currency, is taking steps to help banks that otherwise would be unable to meet their dollar liabilities, analysts said. Central bank officials wouldn’t comment.
Argentines pulled almost $16billion in dollar-denominated term deposits from banks in the two months leading up to the withdrawal restrictions.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
