Thu Jul 5, 2012 7:59pm IST

Argentina banking stocks plunged in early trade on Thursday
after President Cristina Fernandez announced plans to force them
to lend cheaply to local businesses as a way to bolster flagging
economic growth.

The MerVal index of leading stocks was down 2.86
percent, dragged lower by Banco Macro – which
was down 6.07 percent at 8.35 pesos per share.

Shares in leading financial group Grupo Financiero Galicia
, which owns Banco Galicia, were down 6.43
percent at 2.91 pesos per share.

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