Argentina's creditors complain that President Néstor Kirchner and Roberto Lavagna, his economy minister, act as if they are living on another planet.
Argentina has improved on its last debt repayment offer, but
there is still a considerable distance between what the
government says it can afford and what bondholders expect it
will pay. Its "absolute" and "final" offer to creditors in June
struck many as yet another proposal from a government out of
touch with reality. Lavagna did not tell creditors about the
repayment plan first, but announced it instead at a chaotically
organized news conference held almost two weeks before filing
the offer with the US Securities and Exchange Commission. The
result was an offer shot through with inconsistencies,
omissions and errors.
A senior international banker advising the government
comments dryly that, "Making the announcement before the SEC
filing is not standard operating practice. They had a political
motivation to have something out there, to make a strong
statement. This is more of a political, a presidential
decision. We couldn't...
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