Category: Argentina
Banking on the Greenback
Central American countries are scrapping their currencies and adopting the dollar instead to buttress economic reforms and strengthen their financial systems. However, as Argentina’s troubles have shown, this is a high-risk strategy.
A Reversal of Fortunes
Investor attitudes toward Latin American sovereign bonds have done an about face as Argentina stabilizes its
finances and US interest rates fall. As a result, piles of cash have poured into Latin government bonds
Ready to Rehabilitate Argentina
The international debt markets responded enthusiastically to Argentina’s $4.2 billion bond swap that reshaped the country’s repayment schedule. The deal was a strong show of investor support and could revive the economy.
A Deal, But No Direction
Multilateral creditors recently gave Argentina a $39.7 billion aid package to keep the country afloat. The deal?s terms are sweet and the country still has believers, but President Fernando de la Rúa has all but lost support.