Argentina’s banks are bust and the economy is paralyzed. Everyone is going to lose in the biggest default in history, starting with the foreigners.
Category: Corporate & Sovereign Strategy
Posted inMagazine
The Day After Default
The debate over how to deal with countries that go bust heated up as Argentina’s finances disintegrated. But the idea of establishing a formal mechanism to process sovereign debt faces many obstacles, starting with investors.
Posted inMagazine
Committed to Reform
The president of the CVM, Brazil’s capital market regulatory agency, explains why new legislation will reform the country’s equity markets, improve corporate governance and help minority investors.
Posted inMagazine
Wrestling with Restructuring
The deteriorating credit quality of many Latin American debt issuers is raising their financing costs, threatening to push struggling companies over the edge and ignite an unprecedented succession of defaults on corporate bond issues.
Posted inWeb Articles
Is the Law Starting to Rule?
Luis Moreno Ocampo is president of Transparency International for Latin America and the Caribbean and served as a prosecutor in the trials against the Argentine juntas. He is a partner of Moreno Ocampo & Wortman Jofre, a professor at the University of Buenos Aires and currently visiting professor at Stanford. Here, he talks about corruption and the rule of law in Latin America and the forces that are bringing about change in the region.
Posted inWeb Articles
It’s the Law that Counts
Latin America is a region ripe with investment opportunities, but also one bedeviled with perils. The future of Latin America’s largest economies; Argentina, Mexico and Brazil, is looking uncertain. Yet […]
Posted inWeb Articles
Orinoco No Flow?
Venezuela?s Orinoco oil belt, the largest known hydrocarbon deposit in the world, is a gold mine both to the Venezuelan government and foreign investors. Sponsors Texaco, Phillips Petroleum and Venezuela?s national petroleum company Petroleos de Venezuela (PDVSA) signed a $1.1 billion financing as part of the $3.5 billion Hamaca oilfield project in June. Financial backing from the Export-Import Bank of the US helped garner support from commercial banks. But President Chavez wants to pass a new hydrocarbons law (see Promulgations page 8) that threatens to raise future financing costs for oil exploration projects and deter investment in Venezuela?s energy industry.
Posted inWeb Articles
Polar Doubles Up
Empresas Polar, Venezuela?s largest private food-processing company broke new ground this February when it acquired a 98.2% stake in its largest competitor, publicly traded Mavesa, for $522 million. Because Mavesa trades on both the US and Venezuelan securities markets, a tender offer complying with both countries? securities and exchange commissions (SECs) had to be carefully crafted.
Posted inWeb Articles
Promulgations
Zero-Deficit tax law draws protest Argentina has decided to go for the jugular to fight its crippling economic crisis. The latest reform introduced in July, the Zero-Deficit Law, caps public […]
Posted inWeb Articles
Towards a Fairer game
Antitrust legislation has evolved rapidly in Latin America in recent years and continues to adapt to the region?s every changing market conditions. There is still work to be done but there is now a sense of inevitability about its application across the region. From Chile to Mexico the process is pushing ahead.