MercoPress. South Atlantic News Agency
Argentina pays 500m dollars and settles pending disputes with private companies
Argentina agreed to compensate five companies that won rulings over investment disputes as the country looks for the World Bank to approve 3 billion dollars in loans. The companies agreed to accept payment in dollar bonds and to reduce the principal amount of their awards by 25%, the Argentine economy ministry said Friday in a statement. Read full article
Comments
Disclaimer & comment rulesWell now we know which companies to steer clear of for investment purposes because THEY MUST BE STARK RAVING BONKERS on the board of directors.
Oct 19th, 2013 - 05:25 pm - Link - Report abuse 0FFS, have they not learnt at all?
So the WB grants us 3 billions so these cunts can stack them up in their pockets and misspend it in elections. Why can’t the WB wait until a new government comes along and starts from zero, or they have to start owing the WB as if they were not going to have a time bomb in their hands already when they come to power??
Oct 19th, 2013 - 05:41 pm - Link - Report abuse 0The same people that complain that they never get paid get the money and the next thing they do is go running to buy more Argentine bonds. Are we getting screwed again or what?
WB sees Argentinas inevitable growth and fulfillment of potential.
Oct 19th, 2013 - 06:29 pm - Link - Report abuse 0A positive and wise move for the world economy.
2. It's mainly to ri-fi for rolled over WB debt plus granting is not disbursement.
Oct 19th, 2013 - 07:21 pm - Link - Report abuse 0well I hope the UK is not paying money into the world bank to settle argentina debts.
Oct 19th, 2013 - 08:26 pm - Link - Report abuse 0After all, they seem to have money to buy 30 year old jets from Spain
NO!!!!! :O
Oct 20th, 2013 - 02:47 am - Link - Report abuse 0TTT the liar in chief assured me that Argentina wont pay a penny to anyone, ever.
He wasn't lying again was he?
6. Rumor is they are trying to settle with the holdouts too. They know they've lost the court battles and are out of U$.
Oct 20th, 2013 - 01:41 pm - Link - Report abuse 0Never say never
I've always said Argentina will pay.
It would be shocking if they do it while CFK is still around though
Well yanqui, technically, the WB is paying.
Oct 20th, 2013 - 01:44 pm - Link - Report abuse 0A bit like USA, who takes loans to pay their debts...
No “technically” that would be against the WB mandate and not allowed. I've always thought eventually RGs will go with the begging bowl to the IMF to clear all of this mess up.
Oct 20th, 2013 - 02:03 pm - Link - Report abuse 0Not sure the USA will allow it without serious austerity, time will tell.
yanqui
Oct 20th, 2013 - 02:16 pm - Link - Report abuse 0Technically, it doesn't matter who gives you the Cash, now does it...
How are you employed? You are really dumb.
Oct 20th, 2013 - 02:38 pm - Link - Report abuse 0Arg must come to an agreement and pay the ICSID judgements as a condition BEFORE to any loan disbursements. These disbursements may or may not happen depending on what the USA decides After the companies have been paid.
Giving me the money after I pay the debt or just before is... the same.
Oct 20th, 2013 - 02:49 pm - Link - Report abuse 0Seems the WB is coughing up...
Funny how CFK's minions has had to go out and threaten every business with a little stash of U$ JUST BEFORE they made this offer though huh? Coincidence? Methinks not.
Oct 20th, 2013 - 04:28 pm - Link - Report abuse 0Your parents must be so proud that you turned out so bright.
Hang on a minute.
Oct 20th, 2013 - 05:03 pm - Link - Report abuse 0I dont pretend to be a financial wizard so perhaps someone with more expertise could clarify
Yes it looks like “an extremely favourable deal”.
The companies concerned have to take a 28% haircut on the bonds they hold in exchange for some unspecified “local law ” bonds which in view of Argentinas financial reputation of repayment looks a highly risky deal, particularly if they have to purchase them at par rather than the value quoted on the Bolsa
As for BAADE bonds I presumethat they will be purchased at par even though the last quote I could find was 80
The BAADE bonds issue, which is just a money laundering method of persuading Argentines and others to legalize thier hidden dollars back to Argentina with no questions asked, so far only 26m of the 500m offer has been taken up, around 5%. Not a great success,particularly as if they are sold, the cash has to be repatriated to RA at the official rate and paid in pesos
What has been the governments answer?
Twist the arms of the big cereal companies under vieled threats to buy the BAADE bonds at par
Even the narcos, desperate to launder money, dont seem to think much of these bonds.
Someone elucidate please
@ 14 redp0ll
Oct 20th, 2013 - 06:48 pm - Link - Report abuse 0“Someone elucidate please”
No need to, you are correct. They have got a bare faced cheek, they really have.
14. Arg is paying with bond values grossed up to compensate for their extremely low market value so much larger than the current debt+interest+penalties.
Oct 20th, 2013 - 07:51 pm - Link - Report abuse 0It's not a bad deal if you thought you were never going to get paid. I'm sure they'll turn around and liquidate them asap anyway.
Yep @16 I suppose thats it. Save something from the wreck at least, but dont embark on that ship again. Who are the parent companies of these people who have forged this deal I wonder?
Oct 20th, 2013 - 08:32 pm - Link - Report abuse 0@ 16 yankeeboy
Oct 21st, 2013 - 10:57 am - Link - Report abuse 0They will only recover something if:
1) they are paid out in dollars and we all remember the “we will have to pay you in pesos” last year, don't we?
2) if they ARE paid out in dollars they won't be able to move them out of the country, especially as they are argie companies and I can't see any other company falling for this crap.
The original debt was sold to hedge funds long ago. The money is in U$ and will be paid in the USA.
Oct 21st, 2013 - 05:13 pm - Link - Report abuse 0.5 in debt.
Oct 21st, 2013 - 07:41 pm - Link - Report abuse 0Incoming 3 from the WB.
USA is biggest contributor to WB.
yanqui!
Seems it will be paid BY the US too...
;)
Stevie, As I said this was a CONDITION of loan approval, my bet is it won't be disbursed.
Oct 21st, 2013 - 08:32 pm - Link - Report abuse 0We shall see
I don't think your pea brain can wrap itself around how this works.
Go back to turning your wrench in the blinding snow in the Northern Sea. That must be a lovely way to live. Brr,
Paid your taxes yet?
Oct 21st, 2013 - 08:48 pm - Link - Report abuse 0Because the WB is going to need them...
And the best part is that you can't even cry about it, USA being the biggest pay-by-raising-debt country on the surface of earth.
;)
Did that frigid air freeze your brain? What are you babbling about?
Oct 21st, 2013 - 09:16 pm - Link - Report abuse 0We funded WB a 1/2 a century ago with gold. Annual payments from the USA is insignificant/irrelevant to our economy.
To your economy?
Oct 22nd, 2013 - 01:45 am - Link - Report abuse 0Would that be the incoming loan?
Mr. Stevie....you seem to take issue with countries that borrow and more so the ones that actually pay their creditors back. A trait unknown in SOuth America.
Oct 22nd, 2013 - 02:05 pm - Link - Report abuse 0Would you mind enlightening the audience with your understanding of who the vast majority of the USA's creditor's are? Let's start with China holding 8% of all USA debt and you can take it from there and tell us all exactly how much in total foreign countries hold, get paid and have lost from buying USA bonds.
No need to divert, change the subject and elaborate beyond this simple little question posed directly to you.
TY
@25 Uruguay has NEVER defaulted on its debts in spite of considerable popular pressure to do so at times
Oct 22nd, 2013 - 03:31 pm - Link - Report abuse 017 Trillion in debt...
Oct 22nd, 2013 - 03:35 pm - Link - Report abuse 0Pintalo de rosa, querido...
27 Stevie
Oct 22nd, 2013 - 05:03 pm - Link - Report abuse 0That's exactly what they do with the Casa Rosado “darling”. :o)
Mr. Stevie......we know HOW much the American's owe, as do you from your wiki search. Whom are the foreigners and who much?.......most importantly if you cannot accomplish that.........break it down internally and externally.
Oct 22nd, 2013 - 06:04 pm - Link - Report abuse 0BTW.....I believe China owns 1.3 trillion of that 17, according to public records and not Wikipedia.
I will assume you comprehension skills are better than your answer.
Is pink your family color?
Where do you call home Mr. Stevie. Where do many South Americans such as yourself support countries there so much they do it from another continent?
Chris
Oct 22nd, 2013 - 06:22 pm - Link - Report abuse 0You need to taste the flavour of the language, querido...
Avoice
We also know that USA can't pay that debt, should they not borrow money to do so. Which is the same as having someone else paying it...
By “We” do you mean You?
Oct 22nd, 2013 - 06:49 pm - Link - Report abuse 0Because the rest of the world is just fine with our debt level and keeps on buying it.
#30 Mr, you must have been traumatized by financial people, did they rape your family, is that why you fled your birth country? To say someone else is paying it is to say they are not being paid interest for it's use?
Oct 22nd, 2013 - 11:25 pm - Link - Report abuse 0I did no think you could focus and answer a straight forward and simple question. You run from your homeland (though I cannot blame you) and avoid answering a question.
Borrowing to pay a deficit is the same as someone else paying it.....is like saying rape is the same as making love.
They can demand the Argentine bonds on paper and then sell it as toilet paper in Venezuela, thus getting at least some 0.02% of the debt.
Oct 24th, 2013 - 07:33 am - Link - Report abuse 0Commenting for this story is now closed.
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