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Argentina will service 3.5bn dollars maturing next October with bank reserves

Tuesday, August 11th 2015 - 07:14 UTC
Full article 8 comments

Argentina confirmed it will be using Central Bank foreign-currency reserves to service more than US$3.5 billion dollars in international debt that matures in October. The confirmation came through an announcement in the Official Gazette, signed by President Cristina Fernández, Cabinet Chief Anibal Fernández and Economy Minister Axel Kicillof. Read full article

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  • Skip

    So there's no actual reduction in debt.

    Can't wait for the domestic default.

    Aug 11th, 2015 - 08:37 am - Link - Report abuse 0
  • Conqueror

    A typical argie “joke”. Otherwise known as a scam.

    “According to the resolution the Central bank will transfer to the Argentine Treasury in one or several operations, the needed amount of over 3.55bn dollars and in exchange will receive 10-year debt instruments from the Treasury. Interest rate will be similar to that paid for the bank's reserves with a maximum set by the Libor rate minus one percentage point. Payments will be every six months.”

    The “new” argie government probably won't pay anything. That'll be covered up.
    “10-year debt instruments from a ”Treasury” without any money.
    Here comes the extra inflation and tax increases. And what's wrong with 85% tax out of your pay packet? After all, next year, you can have a 30% pay rise. So you'll only be 55% worse off than you are now. Who cares? There are so few affordable things to buy honestly.

    Aug 11th, 2015 - 11:36 am - Link - Report abuse 0
  • yankeeboy

    Its about 1/3 to 1/2 of their cash.
    They're printing and pumping pesos into the economy like never before.
    The anticipation is delightful.

    Aug 11th, 2015 - 01:49 pm - Link - Report abuse 0
  • chronic

    YB called this ages ago. (Check the ANSES and the rest of the alphabet soup accounts.)

    Game over.

    Now the bonded indebtedness is effectively being transfered directly to the rotting roadkillian citizenry - as it properly should be.

    Aug 11th, 2015 - 05:57 pm - Link - Report abuse 0
  • ChrisR

    OK guys!

    It's just a waste of time explaining to the trolls that TMBOA has ruined the entire country! They DON'T believe us!

    There is only one thing to do in this situation: HA, HA, HA, HA, ad infinitum!

    Aug 11th, 2015 - 06:17 pm - Link - Report abuse 0
  • Klingon

    So treasury wrote the central bank a shitty IOU note.
    Now the central bank will count that worthless piece of paper as cash reserves, so it will show as not drop in the BCRA float.
    “K accounting 101” and they will claim we have paid off the International debt.

    Aug 11th, 2015 - 06:53 pm - Link - Report abuse 0
  • golfcronie

    I like it. Creative accountancy, absolutely brilliant, who would have thought it.

    Aug 11th, 2015 - 07:41 pm - Link - Report abuse 0
  • yankeeboy

    Its between 1/3 and 1/2 of BCRA's cash. I foresee another forced devaluation and corralito on the way. There's really no other solution when the U$ runs out.
    Thank you Mr Singer.

    Aug 12th, 2015 - 02:00 pm - Link - Report abuse 0

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