IMF and U.S. Under Fire for Policy on Argentina
Joseph Kahn . IHT/NY Times . 24 december 2001

WASHINGTON The deadly riots in Argentina, the collapse of its government and another multibillion-dollar bailout gone awry have raised fresh questions about the effectiveness of the International Monetary Fund and the financial policy of the United States, the Fund's leading shareholder.
.
Latin American and European government leaders joined protesters in Buenos Aires, Wall Street traders and financial experts in putting at least part of the blame for Argentina's problems on the lending agency and the Clinton and Bush administrations in Washington.
.
Some say the IMF showed callousness in denying fresh aid to Argentina early this month, as the country's economic program, designed with IMF approval, was forcing painful austerity on its citizens. Others say the Fund made the opposite mistake when it repeatedly offered loans to Argentina despite indications that the country's economic policies had become unworkable, delaying the day of reckoning.
.
The criticisms increase pressure on the IMF and the Bush administration to articulate a clear policy toward financial rescue efforts, which often come under intense scrutiny even when they are judged successful.
.
Paul O'Neill, the U.S. Treasury secretary, came into office publicly denouncing multibillion-dollar bailouts, which he said often failed. Even when they succeeded, he said, they allowed foreign governments to get away with bad policy-making and investors to get away with bad bets.
.
In practice, however, the Bush administration has taken no clear stand on bailouts and has made international financial policy a low priority.
.
Peru's finance minister, Pedro Pablo Kuczynski, complained that the Fund and its leading shareholder bungled their dealings with Argentina by adopting inconsistent policies.
.
"The Fund is partly to blame for this because the Fund did not sound the alarm in time and then took a very hard line when things were incredibly difficult," Mr. Kuczynski told Peruvian radio.
.
Hubert Vedrine, the French foreign minister, assailed the IMF for abandoning its longtime client and imposing "demands that have been excessive or at the wrong time." The French, who like the United States are significant Fund shareholders, have called on the lending agency to step up its involvement to help Argentina recover.
.
Mr. O'Neill supported a multibillion loan for Argentina in August. When Argentina's crisis worsened in recent weeks, Bush administration officials took no firm stance, allowing the IMF to make the call on withholding fresh loans, officials involved in the Fund's deliberations said.
.WASHINGTON The deadly riots in Argentina, the collapse of its government and another multibillion-dollar bailout gone awry have raised fresh questions about the effectiveness of the International Monetary Fund and the financial policy of the United States, the Fund's leading shareholder.
.
Latin American and European government leaders joined protesters in Buenos Aires, Wall Street traders and financial experts in putting at least part of the blame for Argentina's problems on the lending agency and the Clinton and Bush administrations in Washington.
.
Some say the IMF showed callousness in denying fresh aid to Argentina early this month, as the country's economic program, designed with IMF approval, was forcing painful austerity on its citizens. Others say the Fund made the opposite mistake when it repeatedly offered loans to Argentina despite indications that the country's economic policies had become unworkable, delaying the day of reckoning.
.
The criticisms increase pressure on the IMF and the Bush administration to articulate a clear policy toward financial rescue efforts, which often come under intense scrutiny even when they are judged successful.
.
Paul O'Neill, the U.S. Treasury secretary, came into office publicly denouncing multibillion-dollar bailouts, which he said often failed. Even when they succeeded, he said, they allowed foreign governments to get away with bad policy-making and investors to get away with bad bets.
.
In practice, however, the Bush administration has taken no clear stand on bailouts and has made international financial policy a low priority.
.
Peru's finance minister, Pedro Pablo Kuczynski, complained that the Fund and its leading shareholder bungled their dealings with Argentina by adopting inconsistent policies.
.
"The Fund is partly to blame for this because the Fund did not sound the alarm in time and then took a very hard line when things were incredibly difficult," Mr. Kuczynski told Peruvian radio.
.
Hubert Vedrine, the French foreign minister, assailed the IMF for abandoning its longtime client and imposing "demands that have been excessive or at the wrong time." The French, who like the United States are significant Fund shareholders, have called on the lending agency to step up its involvement to help Argentina recover.
.
Mr. O'Neill supported a multibillion loan for Argentina in August. When Argentina's crisis worsened in recent weeks, Bush administration officials took no firm stance, allowing the IMF to make the call on withholding fresh loans, officials involved in the Fund's deliberations said.
.WASHINGTON The deadly riots in Argentina, the collapse of its government and another multibillion-dollar bailout gone awry have raised fresh questions about the effectiveness of the International Monetary Fund and the financial policy of the United States, the Fund's leading shareholder.
.
Latin American and European government leaders joined protesters in Buenos Aires, Wall Street traders and financial experts in putting at least part of the blame for Argentina's problems on the lending agency and the Clinton and Bush administrations in Washington.
.
Some say the IMF showed callousness in denying fresh aid to Argentina early this month, as the country's economic program, designed with IMF approval, was forcing painful austerity on its citizens. Others say the Fund made the opposite mistake when it repeatedly offered loans to Argentina despite indications that the country's economic policies had become unworkable, delaying the day of reckoning.
.
The criticisms increase pressure on the IMF and the Bush administration to articulate a clear policy toward financial rescue efforts, which often come under intense scrutiny even when they are judged successful.
.
Paul O'Neill, the U.S. Treasury secretary, came into office publicly denouncing multibillion-dollar bailouts, which he said often failed. Even when they succeeded, he said, they allowed foreign governments to get away with bad policy-making and investors to get away with bad bets.
.
In practice, however, the Bush administration has taken no clear stand on bailouts and has made international financial policy a low priority.
.
Peru's finance minister, Pedro Pablo Kuczynski, complained that the Fund and its leading shareholder bungled their dealings with Argentina by adopting inconsistent policies.
.
"The Fund is partly to blame for this because the Fund did not sound the alarm in time and then took a very hard line when things were incredibly difficult," Mr. Kuczynski told Peruvian radio.
.
Hubert Vedrine, the French foreign minister, assailed the IMF for abandoning its longtime client and imposing "demands that have been excessive or at the wrong time." The French, who like the United States are significant Fund shareholders, have called on the lending agency to step up its involvement to help Argentina recover.
.
Mr. O'Neill supported a multibillion loan for Argentina in August. When Argentina's crisis worsened in recent weeks, Bush administration officials took no firm stance, allowing the IMF to make the call on withholding fresh loans, officials involved in the Fund's deliberations said.
.WASHINGTON The deadly riots in Argentina, the collapse of its government and another multibillion-dollar bailout gone awry have raised fresh questions about the effectiveness of the International Monetary Fund and the financial policy of the United States, the Fund's leading shareholder.
.
Latin American and European government leaders joined protesters in Buenos Aires, Wall Street traders and financial experts in putting at least part of the blame for Argentina's problems on the lending agency and the Clinton and Bush administrations in Washington.
.
Some say the IMF showed callousness in denying fresh aid to Argentina early this month, as the country's economic program, designed with IMF approval, was forcing painful austerity on its citizens. Others say the Fund made the opposite mistake when it repeatedly offered loans to Argentina despite indications that the country's economic policies had become unworkable, delaying the day of reckoning.
.
The criticisms increase pressure on the IMF and the Bush administration to articulate a clear policy toward financial rescue efforts, which often come under intense scrutiny even when they are judged successful.
.
Paul O'Neill, the U.S. Treasury secretary, came into office publicly denouncing multibillion-dollar bailouts, which he said often failed. Even when they succeeded, he said, they allowed foreign governments to get away with bad policy-making and investors to get away with bad bets.
.
In practice, however, the Bush administration has taken no clear stand on bailouts and has made international financial policy a low priority.
.
Peru's finance minister, Pedro Pablo Kuczynski, complained that the Fund and its leading shareholder bungled their dealings with Argentina by adopting inconsistent policies.
.
"The Fund is partly to blame for this because the Fund did not sound the alarm in time and then took a very hard line when things were incredibly difficult," Mr. Kuczynski told Peruvian radio.
.
Hubert Vedrine, the French foreign minister, assailed the IMF for abandoning its longtime client and imposing "demands that have been excessive or at the wrong time." The French, who like the United States are significant Fund shareholders, have called on the lending agency to step up its involvement to help Argentina recover.
.
Mr. O'Neill supported a multibillion loan for Argentina in August. When Argentina's crisis worsened in recent weeks, Bush administration officials took no firm stance, allowing the IMF to make the call on withholding fresh loans, officials involved in the Fund's deliberations said.