Argentina's banks get a breather

During 2001, $20bn was withdrawn from banks

Argentines are once again depositing more money than they are withdrawing from bank accounts, according to a report by the Bank of the Province of Buenos Aires.

We can't speak of a long-term trend, but there is a tendency that is showing the financial system is enjoying some breathing space

Financial consultant Miguel Bein

Bank customers' decisions to return to the banks, soon after panic withdrawals were met with frozen bank accounts, is being seen as a vote of confidence.

Some see it as a sign that the country's banking system could be about to recover from a crisis which has lasted for months.

"We can't speak of a long-term trend, but there is a tendency that is showing the financial system is enjoying some breathing space," financial consultant Miguel Bein told Argentine daily La Nacion.

Small step

During the 14 July to 6 August period, the Argentine people deposited almost $60m (£39m) more than they withdrew from their bank accounts, the bank report said.

About a third was deposited in pesos while the rest was deposited in dollar denominated accounts, it said.

During the first six months of the year, almost a third of all savings in peso accounts, or more than $6bn, were withdrawn.

The withdrawals would have been heftier if the banks had not shut their doors and denied savers access to their money.

During 2001, $20bn was withdrawn from Argentine bank accounts.