Posted on 11/10/2012 5:43:56 PM PST by Lorianne
Argentina could face a credit crisis a decade after its $100 billion default due to a U.S. court ruling that says the country must pay creditors, who still hold defaulted bonds, every time it services its restructured debt.
About 93 percent of Argentine bondholders agreed to swap their defaulted debt for new issues in 2005 and 2010, but "holdout" creditors who rejected the swaps continue to press in courts worldwide for full repayment on the bonds.
Late last month, a federal appeals court in New York ruled that Argentina violated bond provisions to treat all creditors equally when it made payments to creditors who accepted the swaps while refusing to pay the holdouts.
The decision sparked a sell-off in Argentine bonds, sent the price of protection against an Argentine default sky-high, and prompted Standard & Poor's to downgrade the country's sovereign credit rating.
Argentina has stayed out of global credit markets since its 2002 debt debacle partly due to fears the holdouts could block a new issue. It relies instead on the central bank's foreign reserves to pay debt, but its efforts to safeguard those funds using capital controls and import curbs have worsened an economic slowdown.
The government will appeal this latest court ruling and try to stave off its implementation for as long as possible.
U.S. judges have already ordered that Argentina pay holdouts several billion dollars in compensation for the default. But the creditors have largely been unable to collect since most Argentine assets are protected by U.S. sovereign immunity laws.
(Excerpt) Read more at reuters.com ...
Actually, my father said that Argentinian shoes are excellent quality.
Sorry. My fault. I was trying to say that many Americans applying math, for example (only one major tool in technologies), to actual work with real materials would help to strengthen our economy, and ultimately, our nation. Limiting so much to theory in classrooms here will be detrimental—even to theoretical materials, eventually (revisionism, social sensitivities, etc.).
As for global and conglomerate interests using environmentalism, “property values,” etc., to prevent competition on local levels, I’ve personally met them (their relatives, employees, other associates) in commissioners’ meetings here and there—sometimes very unpleasant experiences (videos of all in favor of new, small producers, threats of lawsuits, other threats). There are zoning ordinances against any manufacturing, no matter how small, even in many very unpopulated and remote counties. That’s only one socialist obstacle against such business.
Socialism is a tool of those who want to use government for control over others for various reasons. It isn’t administered by rednecks or folks in slums. Thus, its very deceptive and multi-partisan nature in politics. Many interests use it, and not all of them ostensibly so.
All very true
Some of my favorite employers said something to the effect, “Competition is healthy for business and good for the economy.” They occasionally even bought from each other in order to more quickly serve customers. I haven’t heard that from anyone since the ‘70s.
Yep. Big Business now is all about shutting out competition using the power of government.
I think because Chinese companies are tools of their government, there is a sense that we need to have greater cooperation between business and government in this country in order to compete. Where I come from, that is called “Fascism.”
Very well said.
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