Argentina Declares Bank Holidays

BUENOS AIRES — Bank holidays have been declared in Argentina on Monday and today to coincide with the announcement of a series of measures to stem inflation and reduce the public sector deficit, government officials said on Sunday.

The government also announced a 30% increase in prices for public utility services, transportation and fuel.

3.9% GNP Targeted

Presidential spokesman Jose Ignacio Lopez said the measures signified a war against inflation and rigorous public spending austerity. Reports were mixed on whether the new package would include a price and wage freeze.

Economy ministry sources said they expected some form of voluntary price and income control in the private sector and a sharp reduction in public sector costs and investment.

The government’s target was to bring August inflation down to 14% from more than 20% in July and for it to continue falling, the sources said. The public sector deficit should be brought back in line with the 3.9% of gross domestic product targeted for 1988 from the 10% being forecast on current performance.

The sources could not comment on newspaper reports that the government planned to modify the foreign exchange regime, including a 10% devaluation of the Austral currency.