Argentina and bondholders agree “much can change in the course of a week”

Wednesday, May 6th 2020 - 09:55 UTC

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The government of Argentina and its biggest bondholders are clashing over plans to restructure US$ 65 billion in foreign debt, with little sign of either side budging in last-ditch talks to strike a deal. Read full article

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Jo Bloggs
Tick, tock, tick, tock...
May 06th, 2020 - 11:36 am - Link - Report abuse +1
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bushpilot
Argentina should just default.

Then maybe, just maybe, and finally, no one in the world will invest their money with the Argentine government anymore.

No one should have invested any money with the Argentine government after they called people who wanted their agreements honored, “immoral vultures”.

I don't have much sympathy for people who put a nickel in the Argentine government after seeing what a dishonorable witch CFK was.

And, if the world will finally stop investing in the Argentine government, they will be forced to no longer borrow money, which they shouldn't, and they will be forced to no longer sell bonds. In both cases because there will be no buyers.

Then, their Peronist system of handouts and paychecks for no work will have to support itself.

That will be good for Argentina and good for the world.

But I still think one day Argentina is going to adopt the Yuan as its official currency.
May 07th, 2020 - 01:04 am - Link - Report abuse +1
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Enrique Massot
BP

I agree with part of what you've written above - it would be good if governments did not have free reign on borrowing. However, I disagree with other parts of your posting.

You wrote if Argentina goes to default, perhaps not one will invest there anymore. However, the country has already defaulted many times -- so, why finance managers keep buying Argentine bonds?

Answer: Because some governments could not care less about paying down the debt -- they just care about borrowing -- and then some more. As the previous government, headed by Mauricio Macri did. He borrowed at extra high interest rates -- rates that were not replicated anywhere else. Fund managers need to bring return to their investors -- and Argentina just offered them those big returns, and so they invested in spite of the risk.

Some call it the market's logic. A deadly one.

You take exception to Argentina calling financial vultures “immoral.”

I challenge you to become a bit more informed. Vultures are not normal investors. They specialize in buying junk bonds for pennies when countries are in deep shit, keeping them and then claiming them when those countries begin recovery. They have large resources, and their victims are often poor countries. These people serve no purpose whatsoever in the marketplace other than making huge profits on the back of the weakest. Argentina was for them a big mouthful, and Macri served them the country in a platter after Cristina Fernandez did all she could to avoid rewarding them.
May 09th, 2020 - 11:23 pm - Link - Report abuse 0
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