: IMF'S FOUR STEPS TO DAMNATION
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IMF trying to stem financial crisis

By MARTIN CRUTSINGER, Associated Press

WASHINGTON
(August 4, 2001 09:40 a.m. EDT ) - The International Monetary Fund is moving quickly to try to keep economic troubles in Argentina, Brazil and Turkey from worsening, a situation it fears would trigger a repeat of the 1997-98 Asian financial crisis.

The IMF announced plans to create a $15 billion standby credit line for Brazil and accelerate a $1.2 billion planned loan for Argentina.

In addition, the IMF's executive board announced approval for an additional $1.51 billion loan to Turkey, another country that has been embroiled this year in worsening economic troubles.

The flurry of activity, disclosed late Friday after U.S. financial markets had closed, was viewed as an aggressive effort by the 183-nation lending agency to demonstrate that it was on top of developments and would do what it could to prevent troubles in the three nations from spreading to other developing countries.

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The accelerated loan for Argentina was being made in an effort to bolster the country's resources as it struggles to avoid defaulting on $128 billion in foreign debt.

There has been growing concern in Washington that a default by Argentina or a forced devaluation of that country's currency would send shockwaves throughout Latin America.

A $1.6 billion austerity program approved by Argentina's Senate failed this week to calm investor anxiety.

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