"Argentine President Cristina Kirchner on Monday sidestepped stiff Congressional resistance to spending foreign reserves for debt payments, issuing a pair of decrees shifting about $6.6 billion from the central bank to the Treasury. ... The first decree allocates $2.2 billion in foreign reserves to pay international organizations, while a second orders the central bank to hand over $4.2 billion for other public-debt payments. The moves will help Argentina make the estimated $13 billion due in debt payments this year", Shame Romig at the WSJ, 2 March 2010, link:
There is no law anywhere when it comes to governments. Governments are the worst of all debtors to collect from. To do so, you need your own army.
5 comments:
Put on your forecasting hat here IA. Assuming these reserves are appropriated to the patronage networks that pass as a government down there, what are the consequences two, five or ten years down the road?
It is really too bad. Argentina is a very nice country. Or was. Either way.
Haha IA!
No need for an army.
If you are a powerful enough creditor just corrupt the political process and install someone "amiable"... then those payments will flow.
Say like Pres-O or Kirchner...
if you don't like the rules change the rules.
Texas CPA,
Please do a post explaining your notion of how to calculate an appropriate cost of capital charge to a regulated bank, insurance company, or broker's prop trading unit. I have reviewed your posts regarding the issue by GSG and other businesses, and see you complain rightfully, but don't see you lay out your theory of how it ought to be done.
Thank you.
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