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Montevideo, August 19th 2018 - 17:15 UTC

Argentina's “L” Day challenge: US$ 25bn in Peso bonds mature on Tuesday

Tuesday, May 15th 2018 - 06:54 UTC
Full article 7 comments

The Argentine Peso plummeted to a new low on Monday despite government attempts to curb losses in recent weeks by hiking interest rates and shedding billions in foreign reserves. The Peso fell sharply on opening Monday and closed down 6.2%, trading at 25.52 against the dollar, having lost close to 33% so far this year. Read full article

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  • Jo Bloggs

    I can’t believe it’s already seventeen years since Argentina last defaulted on its debt. How time flies. My Argentine friends described desperation; they couldn’t withdrawn any money and lost millions. How long before the next default? Or will Macri’s policies eventually prevail?

    May 15th, 2018 - 02:44 pm - Link - Report abuse 0
  • Marti Llazo

    @jo

    Actually the last default was in 2014, and the next one is coming right up.

    News for 31 July 2014:

    “Argentina's bonds and stocks fell sharply in trading Thursday as the country slid into default on its international debt for the second time in 13 years.”

    http://www.latimes.com/nation/la-fg-argentina-defaults-20140731-story.html

    May 15th, 2018 - 04:33 pm - Link - Report abuse +2
  • Jo Bloggs

    Marti
    Yes, you are quite correct. It never felt like the previous default though and many tried to argue it was nowhere as significant. I still think of the previous one because I’ll never forget what my friends described. In 2014 they were ready for it I suppose but seemed to get through it much more easily. I remember them telling me about caps on bank withdrawals but I’m not sure they still had much money in the bank TO withdraw.

    May 15th, 2018 - 05:17 pm - Link - Report abuse +1
  • Enrique Massot

    How disingenuous of ML.

    “Actually the last default was in 2014,” he posts, conveniently ignoring that said default was technical because Argentina was able to service its debt but was prevented from doing so.

    The blockage was organized by the vultures of the international finance headed by NML Capital of Paul Singer, with help of their ally in the NY justice system--judge Griesa--to force the country to pay 100 per cent nominal value of Argentina's junk bonds they had bought for peanuts after the 2001 real default.

    Now, dear “market-friendly” president Mauricio Macri has been reduced to beg for a hand from the IMF and as many credit organizations he has found, so that he can have a chance by spreading around some money before the October 2019 presidential election.

    And while analysts spend much talk time these days trying to explain what went wrong financially for the current crisis to unleash, the simple fact is that Macri and his “best in the last 50 years” team focused, for the last 30 months, on the finances, abandoning any aspirations to boost Argentina's real economy.

    May 15th, 2018 - 05:33 pm - Link - Report abuse -3
  • Marti Llazo

    Naturally, reekie doesn't know a default from a hole in the ground.

    If the post doesn't deliver your cheque, reekie, you still have a non-payment event and you are still in default.

    BBC 31 July 2014: “Unfortunately, no agreement was reached and the Republic of Argentina will imminently be in default,” Daniel Pollack, the court-appointed mediator in the case, said in a statement on Wednesday evening. '

    1 Aug 2014: ”The International Swaps and Derivatives Association (ISDA) on Friday declared Argentina in default, which could trigger payments worth up to $1 billion on credit default swaps.ISDA's 15-member determinations committee decided that a “failure to pay” event has occurred on the contracts on July 30, the day Argentina missed a coupon payment on some of its restructured foreign-law bonds.“


    Even the Chinese bond rating agency was pretty clear about Argentina falling into default in 2014.

    It seems that only argentines were unaware, or rather, those who believed the kirchnerist pap that the country was not really in default.

    Media in Argentina in 2014 recognised the default:

    ”El default, la recomendación de los abogados argentinos“

    ”Technically” (since reekie seems to like the word) Argentina was STILL in default in 2016 and I think it still is, due to additional nonpayment events that constitute default. Véase

    Argie media mid-2016: “Pagan US$ 2.500 millones de cupones que estaban en default”

    There will always be reekies who don't understand this stuff.

    May 15th, 2018 - 06:01 pm - Link - Report abuse +2
  • Enrique Massot

    Quite a lot of googling to accomplish Marti's mission: to prove that Argentina was really in default when judge Griesa blocked Argentina payments to legitimate creditors in 2014.

    Marti is no fool--his goal is to deflect attention from the unmitigated disaster the current Macri government is bringing upon Argentina, barely 30 months after taking office.

    As a result, do not expect Marti to comment on the disaster created by the Macri government in barely 30 months , some of which is summarized in the above story.

    No mention on the rapidly evaporating popular support for Macri since flying high last October. Forget about Argentina's currency devaluation 20 per cent and the central bank's clumsy spending of US$ 8 billion in reserves. Don't pay attention to a recessive-causing 40 per cent interest rate.

    No sir. Below such a story, all that counts for Marti is to write about a “default” created by a vulture-friendly judge desperate to please his masters.

    Marti could teach Marquitos Peña a thing or two about how to deflect bad news.

    May 16th, 2018 - 03:51 am - Link - Report abuse -1
  • Tarquin Fin

    Sorry Marti, but I side with Enrique on this one.

    That whole thing in 2014 was just a disgusting maneuver.

    May 17th, 2018 - 12:36 pm - Link - Report abuse +1

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