Argentine province says paid dollar bonds in pesos

[Greg2231]

Just came across this article on the Province of Chaco paying a Dollar bond in Pesos, which according to my understanding constitutes a technical default on the bond, it will be interesting to watch if this expands to other provinces or the national government.

http://www.reuters.com/article/2012...-chaco-idUSL1E8L71S720121007?type=marketsNews

 

[nicoenarg]

Oh goody, one good news after another!

 

[PhilinBSAS]

I have some Patacónes still stashed away but you cant have them cos they are all mine (precious)!

http://en.wikipedia.org/wiki/Patacón_(bond)

 

[PhilinBSAS]

update:

Buenos Aires Herald All bonds under national regulation should be paid in pesos

http://www.buenosairesherald.com/ar...r-national-regulation-should-be-paid-in-pesos

 

[Rich One]

Oh goody, one good news after another!

Need more good news...! The Blue dolar rate went up...!!

 

[el_expatriado]

Just came across this article on the Province of Chaco paying a Dollar bond in Pesos, which according to my understanding constitutes a technical default on the bond, it will be interesting to watch if this expands to other provinces or the national government.

http://www.reuters.com/article/2012...-chaco-idUSL1E8L71S720121007?type=marketsNews

They owed something like $200,000 USD on an interest payment. So, to save $60,000 USD they ended up causing a 5-10% drop in value on pretty much every bond denominated in dollars trading here in Argentina.

There's another example of short-term Argentine thinking at work. They saved $60k by wiping out $300M in value from all the dollar bond issues. Go team!

 

[Napoleon]

They owed something like $200,000 USD on an interest payment. So, to save $60,000 USD they ended up causing a 5-10% drop in value on pretty much every bond denominated in dollars trading here in Argentina.

There's another example of short-term Argentine thinking at work. They saved $60k by wiping out $300M in value from all the dollar bond issues. Go team!

For someone who doesn't have bonds or anything else of value, I have to admit that I didn't understand what this meant in the grand scheme of things. NOW I do. I would say "WOW" to that decision.

 

[dennisr]

There is always an angle, no matter what they do. Like the risk statement, "only risk is a devaluation more than anticipated."

http://www.cronista.com/finanzasmer...ro-rinde-hasta-27-en-pesos-20121010-0076.html

http://translate.google.com/transla...ro-rinde-hasta-27-en-pesos-20121010-0076.html