AP. 1 August 2002. Unions protest as 'bank holiday' continues in crisis-ridden Uruguay.
MONTEVIDEO -- Thousands of union members protested Thursday against the government's handling of a deepening economic crisis, angry over a "banking holiday" that shut off most financial transactions. The peaceful but noisy four-hour protest came two days after President Jorge Batlle's government ordered banks closed, in a bid to stem an outflow of cash from the nation's banks that was threatening Uruguay's financial system. "This strike's aim is to demand real solutions to the financial crisis," said Eduardo Pereira, a leader of the left-leaning group of workers who held the midday rally in Montevideo. Labor leaders said they wanted a national dialogue with the government and made their point by shutting down all but essential public transport for the four hours of the strike. Meanwhile, some signs of social tensions have emerged in recent days, including street protests and a report of a supermarket looting in which police made arrests. Supermarket lootings and middle-class protests were commonplace in neighboring Argentina when a similar economic crisis exploded late last year. Elsewhere, long lines formed outside functioning cash machines as ordinary Uruguayans sought money during the bank shutdown, which began on Tuesday and was to continue through Friday. The latest crisis was sparked by weeks of massive capital flight from the nation's banks, as Uruguayans and Argentines -- who had placed their money here when their own country's financial system started to wobble last year -- yanked their deposits out. The amount of capital in many Uruguayan banks has fallen dangerously low in recent weeks, causing fears of widespread bank closures. In the first seven months of 2002, total bank deposits have fallen 40 percent. The government suspended the activities of two banks, saying it was not prepared to lend them further assistance. The crisis also comes as Uruguay, long considered one of the region's most economically stable countries, undergoes its fourth straight year of recession ------------------------------------------- Macdonald Stainsby http://lists.econ.utah.edu/mailman/listinfo/rad-green http://lists.econ.utah.edu/mailman/listinfo/leninist-international -- In the contradiction lies the hope. --Bertholt Brecht _______________________________________________ Leninist-International mailing list [EMAIL PROTECTED] To change your options or unsubscribe go to: http://lists.econ.utah.edu/mailman/listinfo/leninist-international
