Mop up the financial mess in Argentina’s banks as creditors seek bailout
At least two hundred people have been arrested and nearly two dozen banks are closed across Argentina after the country’s central bank suspended payments for several days.
The central bank said the suspension of bank withdrawals had been lifted on Saturday night after a report by a judge found that the central bank had received “sufficient information” that the bank had not violated rules.
But some bank employees said they had not received a report of any wrongdoing.
The suspension of payments was announced on Tuesday and was to last until the end of the week.
The bank has said it had received more than $15bn from investors and international creditors.
The latest arrests came as the country grapples with the fallout from the worst economic crisis in decades.
Last week, Argentina imposed capital controls to try to ease a capital flight and prevent contagion from a capital control breach that sent the peso tumbling by more than 25 per cent against the dollar.
Investors were left scrambling to buy their money at record lows.
The government says it is providing liquidity to all financial institutions, but many people say the government is failing to adequately address the problem.
“We’re seeing an exodus of people,” said Carlos Vidal, a banker who was working in a bank in Buenos Aires when he was arrested.
“They’re not getting any more money, and we’re seeing the banks closing.”
Argentina has seen a number of bank closures since the beginning of the year, and the central Bank has stepped in to assist. “
The suspension has been lifted pending the outcome of the judicial review.”
Argentina has seen a number of bank closures since the beginning of the year, and the central Bank has stepped in to assist.
The president of Argentina’s central banking union, Rodrigo De La Torre, said in January that Argentina’s capital controls were the “perfect storm” for contagion and that there was a “high risk” of a bank collapse.
Last month, Argentina’s president, Mauricio Macri, ordered a bank closure and other restrictions on the import and export of food, energy and pharmaceuticals after a series of bank failures.
Argentina has also seen the largest-ever bank failure in a matter of days.
On Wednesday, Argentina closed a major airport and other key public transport facilities, including the airport in Buenos Ayres and a large part of the city of Montevideo.
The economy is expected to contract by 2.6 per cent in the first quarter of this year, the worst contraction since 2008.