MercoPress. South Atlantic News Agency
IMF mission arrives in Buenos Aires next Monday to continue negotiations
The International Monetary Fund will send another mission to Argentina to continue debt strategy talks and discuss “next steps,” IMF spokesman Gerry Rice said on Thursday, as the country seeks to renegotiate its US$ 57 billion financing package. Read full article
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Disclaimer & comment rules”Atradius, a global credit insurer...said the risk of a disorderly debt default remained high (and) could return Argentina to the “pariah status” it had in international capital markets...”
Feb 28th, 2020 - 11:11 pm - Link - Report abuse 0Atradius just forgot to say that ALL the parties -- not only Argentina -- have an interest in finding a realistic solution here. Such solution must take into account Argentina's responsibility but also that of the private lenders, who loaned money lured by high interest rates over real repayment likelihood and the IMF that lent the Macri government an unprecedented loan amounting to 60 per cent of its portfolio.
EM
Mar 02nd, 2020 - 05:21 pm - Link - Report abuse 0Seems that you Reekie, seem to forget that the private lenders, ”who loaned money lured by high interest rates (over real payment likelyhood)“ had every right to expect payment of principal, AND interest”, because it was Argentina that offered those rates. So blaming the lenders is only part of the story.
OR, are you saying that Argentina accepted the loans with the intention of not honouring them ? If so, then previous administrations acted in the same way...no ?
Eh, the high interest is offered as an incentive because investors know there is a higher risk of default. They pay their money and take a gamble, and must accept that sometimes they'll lose. If they wanted to play it safe they could buy US bonds with a lousy 1% interest.
Mar 02nd, 2020 - 06:25 pm - Link - Report abuse 0EM didn't say Argentina had no responsibility, just not sole responsibility.
I know.....but ok, you're right (and so is Reekie) - not sole responsibility. So basically, lending (without a guarantee) is a potential trap.
Mar 02nd, 2020 - 07:11 pm - Link - Report abuse 0When someting looks too good to be true, it probably is....
Absolutely. In addition, someone said, “if I owe the bank one thousand dollars and don't pay, I am in trouble. If I owe the bank 10 million and don't pay, the bank is in trouble.”
Mar 03rd, 2020 - 05:28 pm - Link - Report abuse 0That is to say, the IMF loan, speedily decided by skipping some of the organization's policies (such as the one that prohibits lending when there is risk the money will feed significant capital flight) was outrageously inflated -- some say it was Donald Trump's desire to support Macri in his last stretch toward the election. So, even if the IMF won't publicly acknowledge these interesting sides of the deal, it has been letting go all those who intervened in the “Argentina rescue operation.”
And that speaks volumes.
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