Easier lending for small and medium sized firms and improved credit risk management is essential to foster job creation. In late 1997, the Menem Administration announced its intention to privatize Banco de la Nacion, Argentina's largest commercial bank. Strong political opposition, however, makes the timing of this privatization uncertain. During 1998, the government initiated the privatization of the National Mortgage Bank. A key development in helping Argentina meet its external payments is the dramatic growth in Argentina's foreign trade since 1990.
Foreign trade plays an increasingly important role in Argentina's economic development.
Grain output reached a record of over 60 million tons in 1998 as adoption of new technology and management practices significantly increased productivity. Fresh Argentine beef was exported to the U.S. market in August 1997 for the first time in over 50 years, and other export prospects improved tremendously. However, export growth slowed sharply in 1998 due to lower world prices for petroleum and agricultural commodities. Slower growth in Brazil also adversely affected Argentine exports, especially in the automotive sector. Meanwhile, lower GDP growth contributed to a reduction in the rate of import growth.