The IMF, an imperialist financial institution dominated by the rulers in the United States, has said that it will not grant any new loans to the South American country until its demands are met. In spite of the government’s steps to cooperate, the U.S.-dominated outfit has been in no hurry to provide further funds to Argentina.

In a 35-34 vote, the Argentine Senate abolished a 1974 bill known as the economic subversion law. This law had recently been used by some judges to prosecute bankers for their role in the current economic crisis. Some bankers had been charged, for example, with promoting the flight of capital from the country that contributed to the collapse of the Argentine currency.

Congress has also voted to scrap a new bankruptcy code that imperialist officials strongly objected to because it placed some legal limits on creditors’ ability to put the squeeze on debtors for outstanding loans.

"The president has placed his entire presidency on the line to comply with IMF demands," stated a spokesman for Duhalde. "We need a swift and important response to our request for help."

IMF officials also insist that Argentina’s federal government push through severe cutbacks in the provinces. The IMF wants each of the 23 provincial governors to sign an individual agreement detailing plans for cutting the budget deficit by 60 percent--a step that will mean more layoffs and deepening attacks on living conditions of workers and farmers. So far Argentina’s largest province, Buenos Aires, has refused to sign such an agreement.

The economy minister has also announced what is described as a new plan to convert billions of dollars of bank deposits, currently frozen by government decree, into government bonds that would be given to depositors in place of cash.

Duhalde’s hopes for a quick and positive response from the IMF were dashed when fund officials said they would need further time to study how the law on economic subversion had been annulled. It appeared that key aspects of the law had been transferred to the penal code, they said. In Buenos Aires, federal officials asked the IMF to detail the provisions they objected to so the president can veto them.  
 
 
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