Article: A public answer to a private problem.

Byline: Jason Mitchell

State-owned and co-operative banks are set to play a much more important role in Argentina's economy, as a recession takes hold and the country's capital markets shrivel up.

The index of leading indicators of Buenos Aires' Torcuato di Tella University - constructed along the same lines as the US Conference Board Index - showed a massive 21.5% year-on-year fall in February and has recorded 13 consecutive months of year-on-year declines. The drop in all its main components indicates that a recession in Argentina is almost a foregone conclusion this year.

One of the biggest problems for the economy is that the privately ...

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