Decisive moment for Cavallo

Buenos Aires - The Argentine Economy Minister, Mr Domingo Cavallo, left for talks with the International Monetary Fund in Washington…

Buenos Aires - The Argentine Economy Minister, Mr Domingo Cavallo, left for talks with the International Monetary Fund in Washington yesterday that could make or break an Argentine economy on the brink of financial collapse.

As public protests mount, Mr Cavallo must convince the IMF that his fiscal policies are sound and that a delayed 2002 budget will balance the books after missing targets this year.

Argentina also desperately needs a strong endorsement from the IMF to help calm the fears of a nervous public. People continued to line up at banks to withdraw savings due to fears of a devaluation of the peso.

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