Argentina: New President Rodriguez Saa orders default

After 12-hour sitting of Legislative Assembly, Peronist Adolfo Rodriguez Saa was Sunday sworn in as interim President and he immediately declared Argentina would suspend payments on its US Dollars 132 billion public debt, Infosic reports. However, the new President backed by leaders of the Peronist party announced look after the parity between the Peso and Us Dollar, although mentioned the creation of a “third currency” to reactivate the economy.

“Argentina’s situation is very difficult. I ask for help”, said Rodriguez Saa, who has been the governor of the small Province of San Luis, in his inaugural speech in Congress. Besides, the President promised to use the money saved from debt payments to labour and social projects and to create one million new jobs, to mitigate the effects of a 18.6% unemployment ratio affecting the country.

Rodriguez Saa will lead the country to early presidential elections scheduled for March 3 2002. In his speech, it became clear that the final decision on whether to devaluate will be left for his successor in 90 days, as he expressed: “With the current economic and social crisis in the country, these options of dollarization and devaluation, which portray convertibility as the evil of Argentine society, are false.”

Hernan Etxchaleco PRAVDA.Ru