Business in Italy - Special service by AGI on behalf of the Italian Prime Minister's office
FAZIO: CRISIS "OVERCOME" IN LATIN AMERICA, BACKS LULA (AGI) - Agrigento, Italy, Jan 25 - The crisis in Latin America is of great concern to the governor of the Bank of Italy, Antonio Fazio. During his speech at the Forex convention in Agrigento he expressed some optimism, saying that Argentina had "got over the critical phase" and endorsed the new Brazilian leader, Ignacio Lula da Silva.
"In Brazil the reduction in political and institutional uncertainty has already had a positive effect on the currency and long-term interest rates," he said. "This is making the prospect of the central bank becoming fully independent from the government set-up ever more likely". In Argentina, added the governor, "awareness of a new structure for the central bank could help them find a monetary equilibrium after the bad experience they had with their currency board". Giving the thumbs-down, as always, to anchoring it to the dollar, Fazio explained that "the currency devaluation created conditions for competition on the international market". Furthermore, "the re-worded agreement with the International Monetary Fund shows that the most critical phase is over". (AGI)