Category: Argentina

Argentina is close to a three year agreement with the International Monetary Fund that would open the way for a
deal with creditors owed $64 billion.What kind of deal should they expect?

Uruguay’s banking system crumbled after Argentines yanked their money out.The financial authorities are left with little to fix.

Argentine banks are still suffering from weak lending, diminished asset and loan quality, and a steep decline in profitability. Deposits are growing but the banking sector’s recovery remains slow and tenuous.

As Argentina gears up for negotiations with the bondholders it stiffed 18 months ago, other sovereign issuers and banks are experimenting with a new generation of bonds that could profoundly reshape the debt market for years to come.

One of the most remarkable features of Argentina’s debt debacle is the government’s attempt to shift the burden of adjustment away from the domestic economy, transferring wealth from creditors to debtors, and from future generations to current ones. Guillermo Mondino says the long-term consequences of such a strategy are serious and warns other countries to take heed.