Claiming Another Win.(Domingo Cavallo speaks to Newsweek)(Brief Article)(Interview)

The day before he left Argentina for a whirlwind tour to sell international investors on Argentina's $29.5 billion debt swap, Economy Minister Domingo Cavallo spoke with NEWSWEEK's Joseph Contreras. Excerpts:

CONTRERAS: The vice chairman of the banking giant Citigroup has given Argentina six months to reverse the decline in growth and regain investor confidence both at home and abroad. Is that enough time for you to bring the nation out of recession?

CAVALLO: We'll see the reactivation of the Argentine economy in less than six months. [By that point] it will become clear that three years of recession are at an end, and we'll begin a period of sustained growth. The economy in the second half [of 2001] will grow by at least 5 percent over 2000's second semester.

International markets reacted negatively when you recently floated a proposal to link the Argentine peso to a basket of currencies instead of the dollar as a way to help the country out of its slump.

Perhaps they didn't understand because they are confused and think we have a dollarized economy. We have used the dollar to back up our currency, which is convertible. But [in] the future, that convertibility should also include the euro [to] give our economy and monetary system more flexibility and stability.

As a former minister under Carlos Menem, do you expect to be summoned to testify by the judge investigating that government's illegal arms sales to Croatia and Ecuador?

I have been summoned by Judge [Jorge] Urso and by many other judges and have testified both as a witness and as a defendant... I have been acquitted on all counts or the charges against me have been dismissed.