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...just another electoral rite in Latin America, replete though it was with rhetoric, euphoria and ill-defined promises. For the first time in 40 years, an elected Peruvian government was in the process of handing over power to another elected government. Although the official results will not be announced for a month, Garcia, leader of the center-left Popular American Revolutionary Alliance (APRA), unofficially captured 48.7% of the vote, a better than 2-to-l lead over his only significant rival, Lima's Marxist Mayor Alfonso Barrantes Lingán, who headed the ticket of the United Left, an agglomeration...

Author: /time Magazine | Title: Peru: Stirring Hope | 4/12/2005 | See Source »

...deal with Peru's $ 1 4 billion foreign debt. García said last week that he intends to challenge the International Monetary Fund's debt-related fiscal restrictions on the Peruvian economy, which he described as "incongruous." In stead, he said he will seek a collective negotiation of Latin American countries' external debt. Such a course, García concedes, may not be possible. But for many Peruvians it was symbolic of their new leader's determination to explore untried avenues to turn around their country's troubled economy. -- By Marguerite Johnson. Reported by Gavin Scott/Lima

Author: /time Magazine | Title: Peru: Stirring Hope | 4/12/2005 | See Source »

...publicity surrounding the large debtors has overshadowed the plight of many other less developed countries that are in far worse shape. Says William Rhodes, a senior vice president at New York's Citibank, which has $18.4 billion on loan to Latin America: "Progress in some countries is sometimes balanced by setbacks in others." Bolivia, which has an annual inflation rate of 3000%, stopped making payments on its $3.5 billion debt last May. The Sandinista government in Nicaragua is using at least 40% of its budget to fight its civil war and thus has no way to meet payments...

Author: /time Magazine | Title: Fresh Fears About Mounting Debts | 4/12/2005 | See Source »

...When the Latin American debt crisis first struck in August 1982, it seemed like a virulent fever that might quickly overwhelm the world financial system. Instead, it turned out to be more like a chronic ailment that flares up or recedes by turn but is always maddeningly present. When representatives of both creditor and debtor nations came together in Washington last week for meetings of the policymaking committees of the International Monetary Fund and the World Bank, the persistent debt dilemma was at the top of the agenda. Fears are rising once again about the financial condition of Brazil...

Author: /time Magazine | Title: Fresh Fears About Mounting Debts | 4/12/2005 | See Source »

While Brazil and Argentina struggle, the two other largest debtors, Mexico and Venezuela, are continuing to make strides toward easing their credit crunches. Venezuela, which has a 16.9% inflation rate that is modest by Latin American standards, has reached a tentative accord with its banks to stretch out payments on $20.8 billion of its $35 billion debt over 12½ years. Bankers have agreed to give Mexico until 1999 to finish making payments on $28.6 billion of its $96 billion debt. Mexico gained the confidence of the bankers by reducing its inflation rate from 100% in 1982 to 59% last year...

Author: /time Magazine | Title: Fresh Fears About Mounting Debts | 4/12/2005 | See Source »

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