Easing Its Stance, U.S. Offers Loans to Uruguay

Although the Bush administration has been reluctant to give aid to Latin American countries in financial crisis, it recently agreed to bail out Uruguay, a country with a traditionally stable economy. Uruguay has been hit particularly hard by the ripple effects of Argentina and Brazil’s economic crashes. On those countries’ problems, Washington has been ambiguous, and Treasury Secretary Paul O’Neill’s offhand comments about corruption in Latin America had disastrous consequences for the Brazilian economy. The loan to Uruguay is expected to be short-term, allowing Uruguayan banks to reopen before a deal with the IMF and World Bank is worked out. – YaleGlobal