The Homes of Argentines Are at Risk in I.M.F. Talks

In an echo of the harsh economic policies prescribed by the IMF in Southeast Asia after the 1997 Asian Crisis the organization is asking the crisis-ridden Argentina to adopt severe belt-tightening measures. For homeowners across Argentina, the prescribed cure for financial crisis may prove more devastating than the economic disease. In a country still reeling from months of economic chaos, the IMF is insisting that the government lift its freeze on mortgage foreclosures as a precondition for any comprehensive agreement. Thus far, Argentina has carefully adhered to IMF prescriptions in hopes that a long term agreement will restore credit lines and bring back foreign investors. However, citizens and banks across the country are wary of the proposal and fear that lifting the freeze will leave families destitute and flood an already depressed market with unwanted homes. "This country is still in a state of emergency, and we have to recognize and adjust to that,” says Carlos Heller, president of the Argentine Association of Private and Public Banks, “This crisis has severely damaged the image of banks in Argentine society, and the only way to regain that confidence is with policies that are flexible and tailored to individual cases." – YaleGlobal