In hangover of World Cup fiesta, Argentina's economic reality bites

NEW YORK/BUENOS AIRES : Gregorina Victorica, 86, a retiree in Buenos Aires has been cheering Argentina's victory in the soccer World Cup, which has lifted spirits in the South American nation and brought joy to people hard hit by rising prices and economic malaise.

But despite the glow of victory from a dramatic and topsy-turvy final against France, reality is biting with inflation heading towards 100 per cent, tight capital controls, near 40 per cent poverty and fears of more debt defaults on the horizon.

"The World Cup is an immense joy that revives us after suffering economic crisis for so long," Victorica said. "But soon we will have to fall back into reality and face the situations that weigh us down every day."

Argentina's stirring victory, their first since Diego Maradona lifted the trophy in 1986, brought millions on to the streets on Tuesday to cheer the team led by star Lionel Messi, a release valve for frustrations at leaders failing to right the economy for years.

The crowds were so huge and delirious - with some estimates of 4-5 million people on the streets - that the open-top bus parade had to be cut short and the players transferred to helicopters to fly over the city.

But in the hazy hangover of the victory party, Argentines are coming back to earth. The major grains producing country, once one of the wealthiest nations in the world, posted annual inflation of 92.4 per cent in November. The benchmark interest rate is 75 per cent.

Issues of money printing, an artificially over-valued peso and low foreign reserves are sharpening. Investors worry economy Minister Sergio Massa, brought in to fix things in August, is not making enough policy reforms, with an eye on a general election late next year the government