What Argentine President Cristina Fernandez needs to do in order to regain investor confidence.
BY CHRONICLE STAFF
Argentinas president Cristina Fernandez last week made the surprise announcement that she would repay her countrys $6.7 billion debt to the Paris Club group of nations. The announcement came after investors were growing increasingly concerned about a new debt default and speculation was growing about an early exit for Fernandez, whose mandate ends in 2011. The Paris Club announcement partly helped calm markets and even led to speculation that she would also move to repay the $29 billion in outstanding debt to private creditors.
“Argentina’s decision to finally honor and repay its Paris Club debts will be a sound first step in any effort to return to the community of nations that respects its international obligations and contracts," says Robert Shapiro, Co-Chairman of the American Task Force on Argentina (ATFA), an alliance of organizations promoting a settled solution with outstanding debtors. "But it’s not nearly enough. Now, the [government] must use this occasion to resolve the billions of dollars in long-outstanding debts owed to private lenders around the world, so that Argentina can regain its access to international capital markets and the broad international community.”
Argentina announced it would default on its foreign debt in 2001 and formally declared a debt moratorium in January 2002, missing a $28 million interest payment due on an Italian lira bond. In 2005, the government of then-President Nestor Kirchner (Fernandez husband) announced it had reached...
Keywords: Credit Suisse, Goldman Sachs, Germany, INDEC, inflation, intervenionist policies, Lateinamerika Verein, Nestor Kirchner, ouster of President Cristina Fernandez, volatility
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