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Activists welcome Argentina's World Bank Default

James Holland | 16.11.2002 14:23

Argentina has defaulted on a payment of $800m of World bank debt that was due on friday, after it had already been granted a 30 day extension.

The decision to stand up to the power of the world financial institutions means that the government will have larger reserves to pay for it's domestic priorities. Soren Ambrose, debt relief campaigner, said ''In the long term, and for other countries, the impact could be very positive,....This unique challenge to the power of the World Bank and IMF to dictate both macroeconomic policy and debt repayment terms could change the perception of their infallibility (or infinite power),"

James Holland
- e-mail: jools@a16.org.uk
- Homepage: http://www.ipsnews.net/interna.asp?idnews=13929