Argentina tells IMF it can't continue servicing unsustainable debt

Thursday, February 6th 2020 - 09:05 UTC

Full article 5 comments

Argentina on Wednesday told the International Monetary Fund that Buenos Aires cannot continue servicing unsustainable debt, as the IMF encouraged it to enact efficient restructuring policies. Read full article

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tallison46
Here we go again... This is how the last default started.....
Feb 06th, 2020 - 09:44 am - Link - Report abuse 0
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MarkWhelan
Surely Argentina realizes that if it is unable to service it's current debit level other countries are fully within their rights to refuse any further loans regardless of the needs of the country. I am sure that their own bankers stop further loans to peons who are unable to meet repayments.
Why should they expect the International Banking Community to act any differently?
Feb 06th, 2020 - 11:40 am - Link - Report abuse 0
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DemonTree
There's a saying: “If you own the bank $100, that's your problem. If you own the bank $100m, that's the bank's problem.” Also, the international banking community doesn't have the power to send in the bailiffs.
Feb 07th, 2020 - 09:50 am - Link - Report abuse 0
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Enrique Massot
If you go to the bank and ask for a line of credit, said bank will do its due diligence to make reasonably sure you can pay the credit back. In Canada at least, if the banks hand you a bunch of credit cards and you end up with owing more than you can pay, you may go to personal bankruptcy and you and the banks will share the loss.

In Argentina's case, lenders were happy to lend the country money lured by high interest rates -- until they realized the borrowing had gone too far and stopped the lending -- that's when former president Macri went to the IMF for more bucks -- and the IMF was only too pleased to grant its largest-ever loan (Hey, Macri had to be given some oxygen on the road to the election).

So the time has come for all the parties to take responsibility -- and that includes Argentina, the private lenders and the IMF.
Feb 08th, 2020 - 01:01 am - Link - Report abuse 0
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Think
Correct..., Sr Massot..., in short...:

“Moral Hazard”
Feb 09th, 2020 - 09:47 pm - Link - Report abuse 0
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