Argentine president may take drastic measures to deal with debt
By Catholic Online (NEWS CONSORTIUM)
8/25/2014 (2 years ago)
Catholic Online (www.catholic.org)
Argentinian President Cristina Fernández praised her nation's financial system as being "one of the most solid in the world" during a speech at the Buenos Aires stock exchange last week. Many disagree, saying that they fear the mercurial president may go to drastic lengths to deal with her South American nation's debt.
Argentinian President Cristina Fernández praised her nation's financial system as being "one of the most solid in the world" during a speech at the Buenos Aires stock exchange last week.
LOS ANGELES, CA (Catholic Online) - Fernández had previously announced a plan to dodge a U.S. court order to pay so-called "holdout" creditors in New York. The ruling had pushed Argentina into default last month for the second time in 13 years.
Economists warn that the plan to use an Argentine state bank to make debt payments and to invite creditors to swap their foreign law bonds for new ones subject to Argentine law will only prolong Argentina's isolation from international markets. The country defaulted in 2001, and a second one would plunge the economy deeper into recession.
Many doubt the plan is even feasible. One of the holdout hedge funds, Aurelius Capital Management, said Argentina's leaders had "chosen to be outlaws" with the plan. New York Judge Thomas Griesa said it was "illegal", although he stopped short of declaring Buenos Aires in contempt of court, "for the moment."
Many fear that Fernández is adopting an increasingly hardball strategy.
"The president has decided to stop being orthodox and is going all-out radical," one foreign executive in Argentina said. He was referring to attempts over the past year to normalize relations with international creditors in order to regain access to external financing as central bank reserves plumbed record lows.
Hundreds of supporters of Cristina Fernandez de Kirchner hold a rally at 'Luna Park' in Buenos Aires, Argentina, August 12, 2014.
Now apparently stymied by the default, the plan included an agreement to compensate Spain's Repsol with $5 billion after expropriating its Argentine assets in 201. The plan also intends to pay a long overdue $10 billion debt with the Paris Club of creditor nations.
The executive complained of a series of "scary" moves against the private sector, such as threats to sanction a U.S.-based company after it filed for bankruptcy and closed down its local operations, which Fernández claimed was really an attempt backed by the "vulture funds" to spread fear among the population.
Business groups are incensed about a "supply" law being debated in congress that has been described as "retrograde" and "unconstitutional" by business leaders.
Even more worrying, observers fear a conflict is brewing on the scale of Fernández' damaging clash with the farming sector in 2008.
Copyright 2017 - Distributed by THE CALIFORNIA NETWORK
Pope Francis Prayer Intentions for JUNE 2017
National Leaders. That national leaders may firmly commit themselves to ending the arms trade, which victimizes so many innocent people.
In a lost Peruvian valley stands the cinder cone of an ancient volcano, complete with a caldera. Yet, there are no volcanoes near the cone ... continue reading
It's called the Global Strategic Reserve, and it is one of the most important warehouses in the world. White barrels are lined up and ... continue reading
Luis de Carvajal, the Younger, was the son of the Spanish Governor of the province of Nuevo Leon in Mexico. His father, of the same name, ... continue reading
Manuel Noriega has died, at the age of 83. The disgraced Panamanian dictator was closely affiliated with the CIA until he built ... continue reading
A Mexican priest was severely injured after being violently stabbed in Mexico City's Metropolitan Cathedral on May 15. LOS ANGELES, CA ... continue reading
by Catholic Online
- Daily Readings for Wednesday, June 28, 2017
- Terrorists using Christians as sex slaves and human shields in the ...
- Daily Reading for Wednesday, June 28th, 2017 HD Video
- St. Irenaeus: Saint of the Day for Wednesday, June 28, 2017
- Cyber-attack hitting USA right now, experts fear could turn deadly in ...
- New social media algorithm can predict the future
- How decaf coffee destroyed the ozone layer, you monsters
- Central bankers warn of looming global recession HD
- Daily Reading for Tuesday, June 27th, 2017 HD
- Daily Reading for Monday, June 26th, 2017 HD
- Daily Reading for Sunday, June 25th, 2017 HD