Argentina's leftist President Cristina Kirchner proposed nationalizing the country's private pension funds in what could be seen as a grab for cash and power amid the global economic crisis.
The proposal, which triggered a steep drop on Argentina's stock market after it was leaked by union officials and reported in the Argentine press, reinforces Argentina's image as a pariah in financial circles and represents a repudiation of a system of private pensions that had been in vogue in developing countries. In 2001, Argentina announced the largest sovereign debt default in history.
Brokers work at the Buenos Aires Stock Exchange, in Buenos Aires. Argentine stocks fell by more than 11% in reaction to news that the government plans to nationalize private pension funds.
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