Saddled with ever larger dollar-denominated debts as the peso has plunged in value, a group of five Uruguayan citizens launched a hunger strike todemand urgent reform.
Since the devaluation of the Uruguayan peso in 2002, privatesector debt has practically doubled, surpassing 936 billion dollars,according to a report by Councilman Martin Ponce, president of theHouse committee on housing.
"Between debtors, around 500,000, families and guarantors, thedebt affects more than a million people," said Eduardo Satorno,representative of the organization coordinating the hunger strike.
Defaults amounted to 45 percent of the total among privatesector banks and 52 percent among public sector banks, numbers thatSatorno attributes to devaluation (46 percent between June andApril), inflation (26 percent in 2002) and unemployment in a countryin its fifth year of recession.
"The buying power of our salaries has fallen by 25 percent ormore," said Satorno.
Legislators studied a proposal to alleviate the debt burden onTuesday and are expected to provide a resolution by tomorrow.
Measures include term extensions, quota reductions, tax relief,lower interest rates, and debt-for-bonds swaps.
While the government is promoting an agreement between creditorsand their clients, the hunger strikers are demanding legislativereform.
AFP