Overdosed on Debt
Argentina, consumed by excessive borrowing and spending, has discredited itself with investors. Despite another bond swap, only a full rehabilitation of the sovereign's messy finances can save the country.
Each time exhausted investors and bankers, not to mention
ordinary Argentines, think the country's debt crisis is close
to reaching some form of resolution, the government manages to
knock together yet another bond exchange or squeeze more money
out of the International Monetary Fund to stave off default.
Yet, the more Argentina ducks and weaves, the more it
discredits itself it and the more it exasperates the outside
In November, Argentina's feckless President Fernando de la
Rúa was humiliated when he traveled to New York for
meetings with investors and with President George W. Bush,
having just lost the backing of the country's powerful
provincial governors. They rejected De la Rúa's terms
for a new financial arrangement - a crucial concession the IMF
had demanded for supporting the country. In their half hour
meeting, Bush politely urged De la Rúa to continue
working with Fund and did not...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.