Banco de Galicia y Buenos Aires' default ratings were triggered by the bank's announcement of a suspension of payments on all debts, and the beginning of a restructuring process that is currently under way. Before defaulting, the bank experienced deterioration in its credit quality that paralleled a similar process affecting Argentina (Republic of). At year-end 2001, the bank was facing higher deposit withdrawals than was the rest of the system, which threatened its ability to survive. The government took drastic economic measures during the first months of 2002, such as asymmetric pesification, devaluation of the peso, default on public debt, and compulsory restructuring of CDs, which further deteriorated the bank's financial condition, as well as that of the rest of
