Forbes
Thursday, March 07, 2013
By Hal Singer
Argentina is spiraling into chaos. The culprit here is the short-sighted, politically charged, irresponsible economic policy of the government, forcing up inflation, drying up investment, and triggering capital flight with each successive bad idea. The situation deteriorates each day, but Argentina is not yet slave to gravity alone. If its government acts decisively, it can still arrest this descent before it becomes a death spiral.
Argentine President Cristina Fernández de Kirchner’s regime has borrowed repeatedly from socialist Venezuela’s playbook of economic misery over the years: first seizing Aerolineas, the nation’s largest airline, and then, in April 2012, snatching YPF, its largest oil company; then, announcing trade restrictions that require importers obtain a permit for every good brought into the country; and ordering supermarkets to freeze prices for two months.
Quartz
Thursday, March 07, 2013
By Tim Fernholz
Taiwan’s Export-Import bank is using the toolkit developed by so-called “vulture funds” to sue Grenada in US court for failing to make good on a loan.
The Export-Import Bank of the Republic of China loaned the island country of Grenada some $28 million between 1990 and 2000, but it has stopped making payments on the debt, leading S&P to consider it to be in a state of selective default. Grenada is paying creditors who worked with it to restructure its debt after two hurricanes, but the Ex-Im bank has refused to be part of that process.
Financial Times
Wednesday, March 6, 2013
By Joseph Cotterill
Some excerpts from a lawsuit filed by the Export-Import Bank of China (Taipei) against Grenada in a United States district court on March 4, 2013…
If you have been following the pari passu saga on ratable payment of sovereign debt — they tell their own story. (Click to enlarge all images.)
1.) Ex-Im Bank already has a judgement on $32m of debt defaulted on by Grenada.
MercoPress
Thursday, March 7, 2013
Argentina belongs to the G20 and to the IMF, but in the last five years it has refused to allow the Fund to carry out routine annual evaluations of economic conditions for political reasons.
The Argentine government blames IMF policies for precipitating the country's devastating 2001-02 economic crisis and its sustained recovery since then for turning its back on IMF suggested policies.
Officials may also have wanted to stave off criticism over the government's widely discredited inflation data, which the Fund censured last month.
Quartz
Wednesday, March 6, 2013
By Tim Fernholz
The clock is ticking for Argentina to decide whether it will pay back creditors it has held off for eleven years.
The country has been locked in litigation with the lenders who have refused to participate in two restructurings since the country’s 2001 default, demanding the full value of their bonds. In 2012, these hold-outs won a significant legal victory, entitling them to equal treatment with the lenders who agreed to take a 75% discount on their bonds.
PulsAmerica
Wednesday, March 6, 2013
By Chris Carter
Argentine President says her country will pay its remaining debt to ‘vulture funds’; Latin American countries could be adversely affected by EU-US trade agreement; Brazilian President has finances ‘under control’; Peruvian middle class expands by over 60 percent
Argentine President says her country will pay its remaining debt
Argentine President Cristina Fernández insisted on Sunday that her government is ready to pay its debt to the remaining investment fund litigants in New York. She added, however, that the remaining ‘vulture funds’ would not receive the same favorable treatment as the 93 percent who agreed to debt swaps in 2005 and 2010.
Financial Times
Wednesday, March 6, 2013
By Jude Webber
Just as in most of Latin America, many Argentines were engrossed on Tuesday night with news of the death of Hugo Chávez in Venezuela.
It was then that Argentina’s economy ministry snuck out, belatedly, news of the country’s first primary budget deficit since 1996.
The data, delayed without explanation for a month and a half, were finally published on the evening of the economy minister’s birthday. But news of the swing to a 4.4bn peso ($888m) primary fiscal deficit last year from a 4.9bn primary surplus in 2011 was no birthday present.
Fox Business
Wednesday, March 6, 2013
Argentina's benchmark stock index rose Wednesday as Brazil's Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, surged after the company raised domestic diesel prices, surprising investors.
Shares of Petrobras, which has a supplemental listing in Buenos Aires, soared 13% and were the day's most traded stock.
The price hike helps offset investor disappointment with January's lower-than-expected jump in gasoline and diesel prices, which had pushed Petrobras's shares to a seven-year low in recent sessions. Petrobras's shares had been dragged down by expectations for stable crude oil production this year and ongoing concerns about the impact of heavy fuel imports on the company's bottom line
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