World Bank reminds Argentina of G20 duties and urges payment of defaulted debts

Tuesday, September 27th 2011 - 05:58 UTC

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Argentina should pay its debt with the Paris Club group of creditor nations if it wants to continue receiving foreign investment, said Paolo Martelli, director for Latin America of the World Bank’s International Finance Corp, reports Buenos Aires daily La Nación. Read full article

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GeoffWard2
This is out of order.

Forgetit, some time back, showed us that Argentina repayed its defauly loans, albeit with a large amount of re-scheduling so that it paid back eg. 20p in the pound..

OK, a bit of warning over future IMF loans, but it's wrong to hark on the past if Argentina did its best.
Sep 27th, 2011 - 01:08 pm - Link - Report abuse 0
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ElaineB
: )
Sep 27th, 2011 - 01:36 pm - Link - Report abuse 0
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Conqueror
Oh dear. Seems like Argentina still owes lots of people lots of money. But doesn't mention it because “the people” wouldn't understand.

Notice that there was a recent article with CFK's government saying that they would be repaying hundreds of millions “next year”.

So it's not “the past”, it's “the present”. September 21st 2011 http://en.mercopress.com/2011/09/21/argentina-to-pay-sovereign-debts-in-2012-with-5.7bn-from-the-central-bank

Wonder how much more Argentina owes!
Sep 27th, 2011 - 02:25 pm - Link - Report abuse 0
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ElaineB
Argentina did pay off the debt to the IMF - they had first charge on any debt repayment - but they by no means have paid off their debts. They restructured and renegotiated a lot of debt but they still owe a great deal of money. Repayment is a constant headache for the government.

Venezuela has bailed them out and holds about 5billion in bonds, which is why Chavez throws his weight around so much with Argentina. He owns CFK.

All contries have debts and provided they make payments on time they have the trust of the banking world. It is no different to domestic level loans. You pay on time, you have a good credit rating and can borrow money at favourable rates. If you have a bad reputation for paying, it is harder to borrow and you pay higher rates. It is not the amount of debt that is the problem, it is the ability to pay on time.

Argentina is trying to rebuild a good reputation but fails because it will not allow honest assessment of the true financial situation there. Thus the lack of trust. The government lies about inflation because the debt repayments are inflation-linked. And CFK is running out of other people's money to spend on servicing the debt.

Now you can see why she is so obsessed with TFI's resources. She is heading for BIG financial trouble and she sees that as an asset she can appropriate.

If Argentina was properly governed it could be a wealthy and successful country, as it was 100 years ago.
Sep 27th, 2011 - 03:08 pm - Link - Report abuse 0
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yankeeboy
As I said in other posts Argentina is on the verge of losing it's membership in IMF, IDB, WB and G20 over the non-payment of judgments obtained at the WB court, faulty INDEC stats, Defaulted Paris Club Debt and general unpleasantness. The USA holds a lot of sway w/ these organizations and we are shutting them down. We have waited long enough for them to pay up and they refuse. If they don't come into line soon they will lose their ability to process trade payments. This house of cards is really shaky watch out. Maybe they shouldn't have raided that US military plane after all! Timmerman is such a fool. That little stunt could force them in to another default next year a big part of their budget is $ from WB and IDB that is going to be very difficult to replace with Anses funds.
Sep 27th, 2011 - 06:59 pm - Link - Report abuse 0
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