- Created: Wednesday, 06 May 2009 13:39
- Written by Alvaro Michaels
FRFI 169 October / November 2002
The dramatic run on the banks in Uruguay in August has put the country in nearly the same position as neighbouring Argentina.
From January to June, $5.7 billion fled Uruguay, 45% of bank deposits, much of which was Argentinean money. Central bank reserves fell $700m in the same period. In this ‘Switzerland of America’, half the 3.4 million population live in poverty and GDP has fallen since 1997 from 300m pesos to 270m in 2001. On 15 July, popular protests organised by trades unions against the privatisation of the state telephone company resulted in the death of two workers and the declaration of a state of