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Montevideo, July 20th 2019 - 18:04 UTC

 

 

Argentina sells US$ 9bn in bonds, “at the lowest yields in the country's history”

Friday, January 5th 2018 - 10:20 UTC
Full article 14 comments

Argentina sold US$ 9 billion in a three-part dollar bond issuance that was oversubscribed on Thursday, covering nearly a third of its expected financing needs for 2018 early in the year. Latin America’s third largest economy sold US$1.75 billion in five-year bonds at a yield of 4.625%, US$ 4.25 billion of 10-year bonds at 6% and US$3 billion in 30-year bonds at 7%, the ministry said. It said the yields were the lowest in Argentina’s history. Read full article

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  • British_Kirchnerist

    “Argentina has aggressively returned to international debt markets since President Mauricio Macri was elected president in late 2015”

    Aggressive towards who? Not the vultures of the system to whom Macri has been a pussycat. Clearly the “aggression” is towards his own people =(

    Jan 05th, 2018 - 11:06 am - Link - Report abuse -6
  • Tango2017

    I think the article speaks for itself. If investors did not have faith in Marci's leadership the yield would be higher. I am surprised anyone confesses to having any links to the past Kirchnerista regime which like Madera in Venezuela was part of an evil empire driven by self interest and corruption of the like the country has never seen before.

    Jan 05th, 2018 - 11:31 am - Link - Report abuse +4
  • British_Kirchnerist

    http://triplecrisis.com/selling-out-argentinas-future-again/

    Jan 05th, 2018 - 12:54 pm - Link - Report abuse -3
  • Stoker

    Who in their right mind would touch these with a barge pole? If history has taught us anything it is that no Contract with an Argie is worth the paper it is written on ;-D

    Jan 05th, 2018 - 03:28 pm - Link - Report abuse 0
  • The Voice

    Maduro might be interested, toilet paper?

    Jan 05th, 2018 - 03:46 pm - Link - Report abuse 0
  • Tango2017

    British K: you are right one measure. The K technically reduced debt by defaulting on it. This heterodox economic policy is hardly sustainable or moral. The K policies of encouraging foreign investment from foreign countries etc and then defaulting on them has lead to a bad taste that will take decades to repair. The jails are now full of those people you hold high the K's who raped and pillaged the country with impunity during a commodity boom that will probably be never repeated in our lifetime. The last period was in the was at close to 100 yrs ago.

    Jan 05th, 2018 - 04:15 pm - Link - Report abuse 0
  • Enrique Massot

    The article above heralds the great news that Argentina has successfully borrowed yet another $9 billion, and look! It did so at historically low interest rates! That's reassuring.

    Foreign investors trust so much Argentina, they were willing to lend over twice the amount they did! This is great news as Mauricio Macri and his team of CEOs plan to keep borrowing much more in the current year—as much as US$30 billion.

    Some of the money is financing infrastructure.

    However, where most of the massive borrowing of the first two years of Macri government has gone? Economic development perhaps? No sir. It’s being used to keep the party going and

    1. To finance imports
    2. To finance dividends and other payments sent abroad
    3. To finance Argentines' travel abroad
    4. To cancel previous loans
    5. To compensate for capital flight

    Problem is, the country’s capacity to pay is not being enhanced. Rather, the domestic sector capacity is rapidly being dismantled while exports of traditional commodities such as grains and meat have not expanded.

    As some Argentines say: this is a movie we have already seen. We know how it ends.

    Jan 06th, 2018 - 05:53 am - Link - Report abuse -1
  • Tango2017

    Enrique your comments and concerns are valid but there is no plan B if the country is to move forward. Argentines are voting with there cheque books. There has been more new cars sold in the past 12 months than any time in there history. The brain drain of the past decades is being reversed. Investors are cautiously returning. The stock market is at an all time high. We are at a critical juncture which gives the country more hope than at any time in the past 70 yrs. Will there be set backs and policy errors, of course, but they general movement is positive.

    Jan 06th, 2018 - 11:13 am - Link - Report abuse +1
  • DemonTree

    @Tango2017
    Do you mind telling me what foreign investment the K's encouraged and then defaulted on? The default was in 2001, and Nestor didn't become president until 2003. Plus it says right in the article that Argentina had been locked out of capital markets for more than a decade.

    Jan 06th, 2018 - 05:16 pm - Link - Report abuse 0
  • Tango2017

    Whilst it is true that Argentina has been locked out of capital markets due to its serial defaulting on loans and is still classified as a Frontier Economy due to its past reputation we hope for a better future. However the K administration has been unique in that it has been characterised by a mafia of criminals.

    Proof of this can be seen this the daily newspapers under the crime section. The prisons are now full of these people and there are 100's more to come.

    Ref: La Nación. La Cronista or El Clarin

    http://www.heritage.org/americas/commentary/kirchners-make-grab-private-pensions-bail-out-argentina

    http://www.heritage.org/americas/commentary/kirchners-make-grab-private-pensions-bail-out-argentina

    Jan 06th, 2018 - 07:17 pm - Link - Report abuse +2
  • DemonTree

    @Tango2017
    Are you a politician yourself? You dodged the question. Isn't it true that both the massive borrowing and the default happened before the K's took over, and they merely had to deal with the aftermath (whether well or badly)?

    Sadly, I'm not convinced that having a mafia of criminals in government is anything unique to Argentina. CFK has been charged with several crimes but not convicted of any, so we will have to wait and see on that.

    As for your article, it seems remarkably biased. Nationalising the pension funds isn't illegal, and I dunno whether it's any more immoral than when they were privatised in the 90s.

    I couldn't help noticing this line:

    ”Argentina's rank plummeted from 19th-freest economy in the world (out of 156 countries) scored in 1998 to 108th of out 162 countries by 2008.”

    Three years after the first measurement the country was bankrupt. While three years after the second one, it was doing well enough economically that CFK was re-elected. Perhaps we should take these rankings, and the advice of economists that support them, with a pinch or three of salt.

    PS. If you try to include more than one link in a comment, it will replace them all with the first link. You can get round this by removing the 'http://' from the front.

    Jan 06th, 2018 - 09:09 pm - Link - Report abuse +1
  • Enrique Massot

    Tango

    “We hope for a better future.”

    Hope is good. Often it's the last thing we hold to.

    However, you need a bit more then just hope. I guess you feel comfortable with the thought that the Mafiosi are now gone and “decent people” such as Mauricio Macri are now running the show.

    I hope you're never disappointed with the results.

    Jan 08th, 2018 - 07:34 am - Link - Report abuse -3
  • Tango2017

    One can only judge by what one experiences but having started and run a international business here since 2013 for the first time we are seeing the building blocks of running a business getting easier. Is it perfect no. But the corruption at high level has gone and people can see transparency where where was none before. The brain drain is reversing amongst young well educated Argentines who are returning with a different attitude. I have always said never listed to anyone here over 60 yrs as they liked things the way there were. It is the young who keep the country moving forward.

    Jan 08th, 2018 - 10:29 am - Link - Report abuse +1
  • The Voice

    Tango, K supporters seem to have stars in their eyes and are now in denial. A couple here seem to be good examples. Both expats...says it all, out of touch and lead weights to progress

    Jan 08th, 2018 - 10:38 pm - Link - Report abuse +3

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