Argentina's economic crisis hits neighbours

Argentina's deepening economic crisis is beginning to damage neighbouring economies and has sparked fears of a wider regional crisis that could involve the United States.

Latin America correspondent Neil Weise reports.

Mexico's peso has slumped and Brazil and Chile's currencies have hit record lows as investors worry about Argentina's capacity to meet a foreign debt repayment of 22 billion dollars American.International investors aren't interested in further lending to a nation with half its GDP absorbed by foreign debt.. and domestic investors are demanding 15% interest which the government says it can't afford.Argentina has suspended a government bond auction today - sending shockwaves through international emerging markets.A number of analysts say Argentina's crisis could trigger a hemispheric-wide market collapse without warning and US president George W Bush says Washington is monitoring the crisis "closely".

(15:57:59 AEST)

http://www.abc.net.au/ra/newsdaily/s282728.htm

-- Martin Thompson (mthom1927@aol.com), April 25, 2001