The development committee of the International Monetary Fund and World Bank began talks in Ottawa, Canada on November 18, 2001 on how best to alleviate world poverty, yet the debt-crisis in Argentina was in the spotlight. Argentina, Latin America's third largest economy has an agreement with the IMF but wants, at a minimum, to get the IMF to free up about $1.3 billion of the loan money. Argentina wants to swap up to $60 billion of existing debt, mostly held by Argentine banks and pension funds, for cheaper debt to reduce the carrying costs of its $132-billion debt obligations. Economy Minister Domingo Cavallo, however, headed home from the weekend meeting unable to persuade the IMF to release any aid. It had hoped for at least comforting words of support from the IMF that might help reassure and attract investors. Some analysts worry that Argentina could default and push the world into recession, bringing down several emerging economies.

News Stories:

"Street Hears Argentina Debt Clock Ticking"
Reuters, November 19, 2001

"Argentina to Launch Debt Restructuring"
Reuters, November 19, 2001

"El gobierno comienza el canje de deuda sin apoyo financiero"
Reuters, November 19, 2001

"Respaldo externo"
Diario La Prensa, (Buenos Aires) November 19, 2001

"También el Fondo apoya la reestructuración de la deuda"
La Nacion, (Buenos Aires) November 19, 2001

"Crash Investigators Focus on Tail",
Associated Press, November 19, 2001

"Argentina Clings to IMF Meeting Spotlight"
Reuters, November 18, 2001