Thursday, January 14, 2010

Argy-bargy


There's a major row going on in Argentina where President Cristina Fernandez is desperate to regain access to capital markets for her country, eight years after the largest sovereign debt default in history ($100bn). Argentina now has $20bn debt and President Fernandez wants to repay $6.5bn of that, using funds from the central bank. However, the central bank governor, Martin Redrado, refused this request. The President was so annoyed by this that she fired him and issued a Presidential decree authorising the use of reserves to repay debt. Unfortunately for her, both these actions were overturned by injunctions, leaving the President's authority in limbo, and Redrado back in his job. The government will fight its case in the Supreme Court. Meanwhile Argentine bond prices have dived 10%.

7 Comments:

Blogger Eurodog said...

Patriarchal society? Or is it a matter of FP meaning le fric et le pouvoir?

2:20 pm  
Blogger Welshcakes Limoncello said...

Wish I could try that on my bank manager!

12:56 am  
Anonymous Anonymous said...

that's january sales for you.. a discount latino style

4:22 am  
Blogger Mopsa said...

I am an ignoramous and just can't grasp the money market at all...can we go back to bartering?

11:38 am  
Blogger Winchester whisperer said...

Probably a mixture of all three, ED!

Good idea - sack him WL!

Si - buono! - Anon

12:05 pm  
Blogger kinglear said...

Hm - this says quite a lot about the strength of the institutions that country has. Can you see it happening here?

6:55 pm  
Blogger Winchester whisperer said...

You're in the strongest position for bartering, Mopsa

Hi KL - it makes me sick to think about MK's climbdown on N.Rock

10:30 am  

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