Argentina will use 2.3 billion dollars of central bank reserves this year to meet payments to international financing organizations and on its official bilateral debt, according to the Official Gazette. Read full article
They claimed u$40B last week, so it is clear they have less than that now, they have a piss poor crop this year and need to spend U$14B for fuel.
In 2001 the economy collapsed when they had U$9B.
Anyone think they have much more than that now?
@4 Well, they are already in the hole for US$1.3 billion, courtesy of the New York courts. How often are those bonds paid? Have they paid anything to NML et al? Do you reckon the other bondholders can follow the argie plan, tear up the restructuring agreements and demand the full amounts?
Sounds a great deal by the RG Treasury. They pay the Central Bank in non transferable bonds and pay them 1% below Libor rate which today is 0.53%, so effectively the Central Bank is paying 0.47% to the Treasury for the privelege of taking the bonds
Sounds like robbing Peter to pay Paul or have I got it wrong?
... In 2001 the economy collapsed when they had U$9B.
Anyone think they have much more than that now?
It is very difficult to keep up with the sort of triple and even cuadruple entry book keeping of our finance ministry, but from rumours that float out of Bs. As. I reckon at the moment there are about 8 billion US$in reserve, so laying out 2.3 billion will leave a large short fall for paying for LNG!!!!!!
12. U$8-9B is in the ball park. They were counting on a huge crop to bail them out and it didn't happen. Then they figured they get some U$ from IDB/WB and it didn't happen.
Now a huge flood, which will increase inflattion, lower Gdp adn tax revenue.
What is next?
GM/Ford pulling out?
Maybe
They're stuck
and I am glad to be watching it from afar.
I am sorry you're stuck there Simon.
14. Your economic ignorance is simply astonishing. BCRA is pumping 40% more $ into the Arg economy THIS YEAR!! FOR GOSH SAKES!! 40% IN ONE YEAR!!
It is suicide
90% of your currency is now $100 peso bills! BECAUSE THEY ARE AFRAID TO PRINT HIGHER DENOMINATIONS.
Austral to Peso 10,000 to 1
that wasn't too long ago
what's next the Nuevo Peso 10,000/1?
Comments
Disclaimer & comment rulesUsing reserves to pay off debt?
Apr 04th, 2013 - 09:37 am - Link - Report abuse 0Silly silly silly!
I can hear the piggy banks being shaken from here.
Apr 04th, 2013 - 09:45 am - Link - Report abuse 0Just like a farmer selling another paddock to live the high life.
Apr 04th, 2013 - 10:42 am - Link - Report abuse 0They claimed u$40B last week, so it is clear they have less than that now, they have a piss poor crop this year and need to spend U$14B for fuel.
Apr 04th, 2013 - 10:48 am - Link - Report abuse 0In 2001 the economy collapsed when they had U$9B.
Anyone think they have much more than that now?
I'm thinking they should close their doors on this Argentina business, rebrand and then open their doors under a new name, like funland or similar.
Apr 04th, 2013 - 12:30 pm - Link - Report abuse 0@4 Well, they are already in the hole for US$1.3 billion, courtesy of the New York courts. How often are those bonds paid? Have they paid anything to NML et al? Do you reckon the other bondholders can follow the argie plan, tear up the restructuring agreements and demand the full amounts?
Apr 04th, 2013 - 12:44 pm - Link - Report abuse 0Or one fo those Chinese names like Happy Happy Good Investment Country
Apr 04th, 2013 - 12:45 pm - Link - Report abuse 0That'll fool 'em...
@7 You're making me worried because I invested all my pension in Happy Happy Good Investment Company (HHGIC).
Apr 04th, 2013 - 12:53 pm - Link - Report abuse 0I might have to rethink that move.
@7
Apr 04th, 2013 - 02:35 pm - Link - Report abuse 0This HHGIC sounds pretty rock solid. I've been hearing good things about it for a long time.
I'm thinking about investing in some HHGIC stock. Can you tell me more?
@9 apparently their investment strategy is looking for the perfect arbitrage between the official US$ rate and the blue rate...
Apr 04th, 2013 - 02:52 pm - Link - Report abuse 0Sounds a great deal by the RG Treasury. They pay the Central Bank in non transferable bonds and pay them 1% below Libor rate which today is 0.53%, so effectively the Central Bank is paying 0.47% to the Treasury for the privelege of taking the bonds
Apr 04th, 2013 - 03:52 pm - Link - Report abuse 0Sounds like robbing Peter to pay Paul or have I got it wrong?
4 yankeeboy (#)
Apr 04th, 2013 - 04:39 pm - Link - Report abuse 0Apr 04th, 2013 - 10:48 am
... In 2001 the economy collapsed when they had U$9B.
Anyone think they have much more than that now?
It is very difficult to keep up with the sort of triple and even cuadruple entry book keeping of our finance ministry, but from rumours that float out of Bs. As. I reckon at the moment there are about 8 billion US$in reserve, so laying out 2.3 billion will leave a large short fall for paying for LNG!!!!!!
12. U$8-9B is in the ball park. They were counting on a huge crop to bail them out and it didn't happen. Then they figured they get some U$ from IDB/WB and it didn't happen.
Apr 04th, 2013 - 05:34 pm - Link - Report abuse 0Now a huge flood, which will increase inflattion, lower Gdp adn tax revenue.
What is next?
GM/Ford pulling out?
Maybe
They're stuck
and I am glad to be watching it from afar.
I am sorry you're stuck there Simon.
http://en.mercopress.com/2013/04/04/boe-ready-to-pump-liquidity-if-first-quarter-confirms-uk-back-in-recession#comment235460
Apr 05th, 2013 - 01:44 am - Link - Report abuse 0lol
14. Your economic ignorance is simply astonishing. BCRA is pumping 40% more $ into the Arg economy THIS YEAR!! FOR GOSH SAKES!! 40% IN ONE YEAR!!
Apr 05th, 2013 - 10:57 am - Link - Report abuse 0It is suicide
90% of your currency is now $100 peso bills! BECAUSE THEY ARE AFRAID TO PRINT HIGHER DENOMINATIONS.
Austral to Peso 10,000 to 1
that wasn't too long ago
what's next the Nuevo Peso 10,000/1?
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