RIO DE JANEIRO, BRAZIL – In addition to the severe economic crisis that Argentina is experiencing, the country is now also faced with dramatic fires. At least 14,000 hectares caught fire in the province of Córdoba. The strong winds and lack of rain have contributed to the increase in flames, local authorities said on Monday, August 24th.
The fires are located in a region with cattle pastures and mountainous areas. The government has sent aircraft to fight the fire and help the firefighters.
The government of Córdoba warned about the “extreme” risk of fires throughout the province, amid dry weather and wind conditions, and asked citizens to report them. Some residents had to be evacuated, as their homes were at risk of being struck by fire.
Local authorities are investigating the cause of the fires amid suspicions that they may have been caused by farmers using “slash and burn” methods to open new pasture land for cattle.
The flames have already destroyed phone lines in some parts of Córdoba and threaten to block the main highway routes, officials said.
Economic Crisis
The Argentines are already in their third year of recession with galloping inflation and a severe economic crisis, its worst in the past 20 years. The country is trying to renegotiate its foreign debt while the country’s GDP plummets – economists project a 12 percent drop this year.
The financial market is already betting on the country’s 10th debt default. The last major default occurred in 2005, when the discount spread for new bonds was less than half of the current one.
To make matters worse, US currency reserves are considerably depleted. Today, they amount to US$10 billion. Brazil, in contrast, has approximately US$ 400 billion in reserves.