World Bank supports Argentina, favors institutional frame for 'holdouts'

Wednesday, October 8th 2014 - 03:46 UTC

Full article 5 comments

World Bank Chief Economist for Latin America and the Caribbean Augusto De la Torre has said the ongoing conflict between Argentina and holdout creditors is due to the “lack of international debt regulation frames”, and favored Argentina's initiative in the UN to “solve the situation.” Read full article

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Conqueror
What a numpty! There IS an institutional frame for ending the conflict. It's called a court of law. If the situation is that a minority of bondholders can reject a debt restructuring, where is the problem? Argieland went ahead and restructed anyway. So it doesn't block a debt restructuring, it's just a case of them saying that it's not for them. Do I dare mention bankers et al looking after themselves?
Oct 08th, 2014 - 08:30 am - Link - Report abuse 0
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reality check
It's a classic case of the money makers taking care to look after their “cake.”
Oct 08th, 2014 - 08:46 am - Link - Report abuse 0
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RICO
Argentina chose the bonds they issued and the law it was under in order to get the best rates. If the changes go through then serial deadbeats like Argentina will be able to raise funds but at a rate that fully reflects the change in risk caused by the change in terms.

Rates will go up to reflect the lack of protection for lenders with the worst ranked debtors facing a disproportionately high rate. Argentina cannot make international investors lend it money on its terms when there are so many other places to invest.
Oct 08th, 2014 - 12:26 pm - Link - Report abuse 0
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GeoffWard2
'... conflict between Argentina and holdout creditors is due to the “lack of international debt regulation frames” '

No, it's because Argentina does not pay its debt when it should,
and the lenders say “No, we insist you pay it back”.
That's all, it's really very simple.
Oct 08th, 2014 - 04:41 pm - Link - Report abuse 0
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Z-ville
@1

But that's the Argie “creativity” that the article mentioned. They make up their own rules as they go, with a deadly mix of arrogance and incompetence as their guiding light.

Argentina showed the “restructuring” down the bond holders throats in a “Take-it-or-leave-it” fashion. That's why they're digging in their heels.
They don't want to look like liars now, do they...?
Oct 08th, 2014 - 07:54 pm - Link - Report abuse 0
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