MercoPress. South Atlantic News Agency
Argentina appeals to 5.7bn dollars Central bank reserves to pay sovereign debt
As was anticipated in the Argentine 2012 Budget the government is appealing to Central Bank reserves to pay sovereign debts. According to a resolution published in the Official Gazette, a Treasury bill equivalent to 5.674 billion dollars will be repaid to the bank in several instalments during ten years. Read full article
Comments
Disclaimer & comment rulesArgentina has hit rock bottom and has started to dig.
Apr 27th, 2012 - 05:47 am - Link - Report abuse 0Another positive sign from this truly superb economy.
Apr 27th, 2012 - 06:26 am - Link - Report abuse 0I'm definitely siding with Think now and his termed 'unusual policies', I mean its such a astonishing success the government can't even repay its bills without borrowing more money........
Great stuff Argentina - keep on digging - I'd prefer to call it mud - it will become self enveloping, and later all consuming! Meanwhile Borders&Southern raise another 44milllion to continue oil exploration in the south Falklands basin. All good long-term news for the Falklands.
Apr 27th, 2012 - 09:04 am - Link - Report abuse 0LIBOR is currently 1.01313%, so the government will be paying 0.01313% interest.
Apr 27th, 2012 - 09:25 am - Link - Report abuse 0@4 Not really relevant when you're dipping into your currency reserves and stealing companies in order to pay your loans.
Apr 27th, 2012 - 11:12 am - Link - Report abuse 0I do think its strange they would use the London Inter Bank Offer Rate as a point of reference though. Isn't there some INDEC figure they could use to make the central bank pay the government interest for taking the money off their hands?
Apr 27th, 2012 - 11:24 am - Link - Report abuse 03 falklandlad
Apr 27th, 2012 - 11:48 am - Link - Report abuse 0Exactly!! I can for the life of me think why no other country and decided to follow Argentinalands outstanding ecomonic model.
Still, you got to hand it to these trailblazers, when they settle upon a lost cause, they really commit!!
The rating agencies are dropping bond ratings for all Argentinian companies due to the erratic behavior of CFK. The expropriation is going to cost all of their big businesses lots more $ to get international financing. So they will have EVEN MORE U$ flying out of the country.
Apr 27th, 2012 - 11:59 am - Link - Report abuse 0I believe that you will find that DEBTS are not being paid, but just paying INTEREST on existing debts.
Apr 27th, 2012 - 03:16 pm - Link - Report abuse 0With their credit rating placed on negative watch by 'Fitch' it's going to cost them more to borrow.
Apr 27th, 2012 - 04:11 pm - Link - Report abuse 09 jerry
Apr 27th, 2012 - 04:29 pm - Link - Report abuse 0This is the really worrying thing for Argentina. $6bn on paying interest this year alone (possibly another $1-1.5bn will be needed according to Reuters) and this is only to pay interest rather than principal. That looks like reserves will be down to just below $38 by this time next year and (depending how the world economy goes) we could see the central bank with only $30m by the beginning of 2014. The government will continue to spend money on its popularist policies but soon that cash is going to run out and, in doing so, it will stimulate really serious levels of inflation (which for the last two months has jumped from avg 23% to 30%) and more capital flight. More people will push their cash into dollars in the grey market thus pushing a punishing rate of exchange of c. $5.3 - 1 through to possibly $7 or $8 - 1. The actual exchange rate will follow as the government will not have the liquid $s to prop up the current rate and people will find that their savings halve in that period.
How long before CFK declares Argentina is an Islamic state and is therefore theologically unable to pay any interest in future? Worth a try
Apr 27th, 2012 - 06:39 pm - Link - Report abuse 0Who says...Argentina can not pay back its debts..!
Apr 27th, 2012 - 06:44 pm - Link - Report abuse 0I'm just curious if the typical Argentine understands that this makes their government look like a bunch of fucknuts and shitheads? Just curious....
Apr 27th, 2012 - 06:51 pm - Link - Report abuse 0look guys, just so as you dont think we all dislike you,
Apr 27th, 2012 - 08:36 pm - Link - Report abuse 0I am willing to lend you 5 quide, but you must pay me back 100 pounds a wekk for 3 years,
their simple isnt it,
Argentina will shortly be like the poor sods that think borrowing off one credit card to pay another's monthly installment is sound family monetary action!
Apr 27th, 2012 - 09:06 pm - Link - Report abuse 0Only when the annual statements come in do (some of them) realise the absolute bind that they are in. The Argies are soon going to get the annual statement.
I wonder what will happen when that happy day dawns over BA? Riots, government overthrown? I doubt it: it requires nerve, planning, backbone to impliment and courage to see it through. All attributes that are absent from most of the Argie population.
China eyes Argentina's high-speed rail system
Apr 28th, 2012 - 01:55 am - Link - Report abuse 0By Tim Sheehan / The Wall Street Journal
Friday, April 27, 2012 | 10:09 PM
In the 19th century, laborers from China helped build railroads.
In the 21st century, the Chinese may be again doing the same -- not for backbreaking labor, but with financial and technological muscle.
The People's Republic of China has more miles of track for high-speed trains than any country in the world, while Argentina has none. But the Chinese want in on the state's fledgling high-speed rail project. They're eager to help bankroll and build the system and, eventually, provide the trains to operate on the tracks.
China's with the newly created Argentina High-Speed Rail Authority to share information about high-speed rail -- and wants a piece of Argentina's business.
“Other countries want to be a part of this because they know high-speed rail can be profitable,” said Maximo Kirchner, the authority's deputy executive director. “Their ultimate interest is operating the system.”
But experts suggest that China's economic might -- and government-backed companies -- give it an advantage.
“China is cash-flush, and its highly subsidized industries are bankrolled with surplus government funds,” said Usha Haley, a professor of international business at Massey University in New Zealand and an expert on China's worldwide business strategies. “They're investing in infrastructure around the world ... and if they're bidding in an open-bid process, China will get that bid.”
Argentina expects to barter part of it’s newly nationalized petroleum of about $43 billion over the next decade to build the backbone of an 800-kilometer high-speed system linking the state's major cities..
It's too early to know what Chinese foreign investment might look like. Argentina is still forming its business plan for high-speed rail, and construction won't begin until mid- to late 2016 between Buenos Aires and San Juan. Test runs could begin as early as 2018.
@17
Apr 28th, 2012 - 03:27 pm - Link - Report abuse 0But if the current Argentinian government sign a trade agreement with China will they actually honour it? That is the problem. The govenment of Argentina at this moment in time is rather erratic and unpredictable and that is a problem for investors.
More “pie in the sky” plans. Along with the defunct ideas of the Bullet Train and the oil pipeline built from Chavez-land to Argentina!
Apr 28th, 2012 - 03:41 pm - Link - Report abuse 0@19 Perhaps CFK and co might need to get on a fast train one day...
Apr 28th, 2012 - 04:35 pm - Link - Report abuse 0Commenting for this story is now closed.
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