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Argentina to default on loan repayments?


Iphonista

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That's what happens when you lose the trust of the markets once.

Salutary lesson.
 

ffc

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That's what happens when you lose the trust of the markets once.

Salutary lesson.
Yeh, GDP growth 8.9% in 2011, 9.2% in 2010, 3.4% in 2012, estimated 4.8% 2013, what were the figures for Ireland again?
 

stopdoingstuff

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Why is this a problem? Investors get paid interest to compensate for the risk of default. If a default occurs then that's the investors' problem. If the investors don't like it, then too bad.
 

Iphonista

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Yeh, GDP growth 8.9% in 2011, 9.2% in 2010, 3.4% in 2012, estimated 4.8% 2013, what were the figures for Ireland again?
Argentina: massive default in early noughties and locked out of bond markets since then. What do GDP growth figures have to do with that?
 

Eye of Angkor

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Yeh, GDP growth 8.9% in 2011, 9.2% in 2010, 3.4% in 2012, estimated 4.8% 2013, what were the figures for Ireland again?
Did you read the following from one of the links?

"Argentine politicians, even those opposed to President Cristina Fernandez, have nearly unanimously criticised the judge's ruling as threatening the success of the debt relief that enabled Argentina to grow again."

If correct doesn't sound as if the default led to the figures you quoted.
 

ffc

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Argentina: massive default in early noughties and locked out of bond markets since then. What do GDP growth figures have to do with that?
Because the common consensus is that pleasing the bond markets or international money markets should be the priority of any government, even if that means huge resources are spent paying off speculators and financiers who loaded unsustainable debt on to goverments long since despatched (by the electorate). Argentina's experience since it's default would seem to disprove this, as growth and social spending have increased.
 

stopdoingstuff

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The story here is not that Argentina might default but that some judge got it into his head that he could go and push a sovereign nation around. Blame the judge and blame American arrogance. I wouldn't worry though, in the not too distant future, they Americans will have lost control of their Latin American backyard. They are already hated.
 

greenwithirony

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The story here is not that Argentina might default but that some judge got it into his head that he could go and push a sovereign nation around. Blame the judge and blame American arrogance. I wouldn't worry though, in the not too distant future, they Americans will have lost control of their Latin American backyard. They are already hated.
Argentina appeals against US hedge fund ruling | Business | guardian.co.uk

Argentina has appealed against a US court order forcing it to pay $1.3bn (£810m) to hedge funds holding debts from the country's 2001 default.
About 93% of bondholders agreed to a restructuring that gave them back about 30p in the pound, but some hedge fund creditors refused the deal and are pursing Argentina through courts across the world. Argentina has refused to pay the hedge funds, which it describes as "vultures".
Earlier on Monday, investors holding $1bn-worth of restructured Argentine debt filed an emergency motion in a US court to also fight the ruling, which they fear could prevent payment on their bonds and lead to a fresh default.

They are concerned that if Argentina is forced to pay the so-called vulture funds it will reduce the amount of money the country has available to its other lenders, pushing it into a technical default on its existing $60bn of debts.
(my emphasis)

In his ruling last week, Griesa said: "Argentina owes this and owes it now."

"In accepting the exchange offers of 30 cents on the dollar, the exchange bondholders bargained for certainty and the avoidance of the burden and risk of litigating," he said. "Moreover, it is hardly an injustice to have legal rulings which, at long last, mean that Argentina must pay the debts which it owes. After 10 years of litigation this is a just result."
Nothing to do with losing the market's trust, just a few very specific psychopathically greedy loons.

See also: http://www.politics.ie/forum/economy/197573-meet-one-your-new-owners.html
 

Orbit v2

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So, this means the much vaunted Argentine default, never actually happened? They simply strong-armed the majority into accepting a haircut.

But it might be about to happen ...
 

Iphonista

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greenwithirony

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As a result of this ruling, the Argentinians will be strapped for cash but can't borrow from the markets to cover themselves.




QED
Perhaps, but that's because of this specific ruling, which save for the vulture funds who brought it, is in nobody's interest, including the vast majority of market investors involved with Argentina.

I suppose it's possible that some of these 93% might broker some sort of deal with Argentina (short-term funding?) to prevent a default, I've no idea how likely that might be.
 

Mackers

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Jan 24, 2011
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Iceland gave two fingers to debt collectors and the world seems to have kept turning.:roll:
 

Ribeye

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Jul 12, 2011
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America is defaulting on its debts every single day,

Snigger, crazy world:)

Wake me when the war starts:)
 

Analyzer

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Feb 14, 2011
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Iceland gave two fingers to debt collectors and the world seems to have kept turning.:roll:
That wasn't sovereign debt.
Neither was ours....except Lendahand decided that a "bailout" was needed.

He also decided we needed a "bad bank", when we already had six of them at that stage.

And the Irish media told us that he was an extremely intelligent fellow.
 

Howya

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Feb 29, 2012
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That's what happens when you lose the trust of the markets once.

Salutary lesson.
They didn't lose the trust of the markets. Investors holding 7% of the bonds refused to take the restructuring deal a few years back and are litigating to get their loans repaid. I don't know the legal nuances of why they still have a case but it has nothing to do with the credit worthiness of Argentina.
 
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