Tag Archives: Argentina

Argentina’s Exchange Offer May Not Be Clever Enough Yet

By Matt Levine – And the other day Argentina’s government introduced a bill in parliament to do a debt exchange to get around Judge Griesa’s orders, which he specifically told it not to do.

So yesterday (Aug 21) the holdout bondholders went to court to try to get Judge Griesa to hold Argentina in contempt, and Judge Griesa basically said (pdf), well, this is pretty contemptuous, but he still didn’t hold Argentina in contempt.

Because what good will that do? They’ve ignored him so far. more> http://tinyurl.com/ld2uzqs



Who’s to blame for Argentina’s debt default?

By Tim Fernholz – The whole reason for Argentina’s 2001 default was the string of currency crises in Asia and South America in the 1990s, with the IMF and other international financial leaders having bungled their responses to a series of problems in developing economies.

Now, because the courts didn’t provide a pathway to a settlement, some say that New York’s status as a center for international finance may wane.

But why did Argentina issue its bonds in New York in the first place?

In no small part because people with money trusted US law more than that of Argentina, thanks to the country’s history of erratic economic policy. That suggests the real villain is … more> http://tinyurl.com/pao4nwk


Eurozone debt crisis: how Greece could exit the euro

By Alistair Osborne – It would take place late on a Friday night, after the markets closed, or possibly Saturday morning. It would also signal the start of what Saltiel* sees as the “containment” phase of the operation – before the lengthier “resolution” stage.

Much would then happen simultaneously. Greece would announce its decision, declare a two-day bank holiday – as Argentina did when it defaulted in 2002 – and convene an emergency session of Parliament. Assuming MPs rubber-stamped the exit (admittedly no foregone conclusion in Greece), new laws would be passed governing the details of an exit. more> http://is.gd/IJaS9e

* Miles Saltiel, the lead author of the Adam Smith Institute’s entry for the Wolfson prize.