fresh hope after argentine crisis three years after argentina was hit by a deadly economic crisis  there is fresh hope.  the country s economy is set to grow about 8% this year after seeing 9% growth last year  a sharp turnaround from 2002 when output fell 11%. the unemployment rate is improving  too: it is set to slip below 13% by the end of the year  down from 20% in may 2002. true  problems remain  but the overall picture is one of vast improvement. even the international monetary fund (imf) admits this.  the argentine authorities are proud  should be proud  of the strong performance of the economy   thomas dawson  an imf director  said earlier this month.  argentina has made a remarkable recovery from a hideous and lengthy recession which in 2001 culminated in the government halting debt repayments to its private creditors. the debt default sparked a deep and prolonged economic crisis which  at least initially  was made worse by the government s decisions. pension payments were halted and bank accounts frozen as part of austerity measures introduced by the government to deal with the country s massive debts. in response  angry crowds of ordinary argentines took to the streets where dozens of lives were lost in clashes with the police. two presidents and at least three finance minister resigned in less than a month. argentina was on the brink of collapse. the fix was found in the currency markets with the abandonment of the peso s decade-long peg to the us dollar in february 2002. the subsequent devaluation saw thousands of people s life savings disappear. scathes of companies went bust.  three years ago  every sector [of the economy] was hit by the crisis   said entrepreneur drayton valentine. it really was dire.  but since then  the general mood on the ground has improved dramatically  in part because the devaluation helped attract fresh direct investment from abroad and stimulate business within brazil.  agriculture and tourism are helping   said entrepreneur drayton valentine.  mr valentine  who was born in the united states but grew up in argentina  was fortunate: at the time of the crisis  his savings were held in dollar accounts abroad. but now he is using his money to help with the start-up a trading company. he explained that initially  his firm is going to export building materials to spain and united states. then  he would like to diversify to other areas  depending on the market.  locally there is a sense of recovery  many companies are exporting now   he said  noting that a lot of firms  which were closed during the crisis  are re-opening.  but not all that shines is gold. argentina is still burdened by its failure to pay private creditors at the end of 2001. president nestor kirchner s administration is still trying to hammer out an agreement with the creditors  but with the debts  nominal value standing at around $100bn it is not proving easy. debt defaults make further lending agreements both difficult and expensive to negotiate. argentina s current offer implies that the creditors would get just 25 cents for each dollar they are owed  according to the creditors. understandably  they want more and until they do  both they and others are loath to continue lending. for president kirchner  this proves a hopeless challenge. real losses have been suffered and somebody has to pay  observed jack boorman  adviser to imf s managing director  rodrigo rato.  everyone needs to keep in mind the enormous cost on the part of both creditors and the argentine society and people that will have been endured by the time a settlement is reached   he said.  the cost is enormous  and continues to be paid  and will not be reversed by any restructuring.   with the international negotiations being troubled  it is of little help to president kirchner that the domestic situation remains strained as well.  this is partly because there are still bank account holders who are waiting to recover some of their deposits.  the situation is bad for those who had previously chosen to save in argentina    said carlos baez silva  president of aara  an association that represents bank account and bond holders. few people have recovered more than about half their savings  mr baez silva estimated  pointing out that many of the savers who have lost out are pensioners or others who once trusted the government  people who set aside money for the future in the belief that their investment would be safe.  a lot of them invested in good faith   he said.  the argentine state responded by taking most of their investments.  the affair has made mr baez silva disillusioned with the country s legal system. on occasion  the supreme court has ruled against the interests of the people he represents  he says  insisting that the system cannot be trusted.  people have to deposit their money in the banks  not necessarily because they trust them but because crime is so high that people cannot have their money in their homes beneath their mattresses.  mr valentine  who was born in the united states but grew up in argentina  agreed.  if i have to save pesos [the local currency] there is not much problem  but i will think twice before i deposit dollars in a bank .