Litigation ‘tsunami’ breaks over Argentina’s Javier Milei

[MilHojas]

Litigation ‘tsunami’ breaks over Argentina’s Javier Milei

Billions of dollars of judgments and claims in international courts pressure cash-strapped libertarian government

www.ft.com

“There is a 50-50 chance that Argentina’s government can meet its commitments in the next two or three years,” he said.

I guess this is how experts say, 'I have no idea,' these days while trying to sound scientific.

 

[dlish]

Article without paywall: https://archive.ph/UpNi6

 

[LuckyLuke]

You can't squeeze water from a stone. The debts will either be defaulted, renegotiated, or paid in kind. As the lone commenter on the article says, the smartest move would be to offer equity in domestic projects that encourages further foreign investment (assuming they don't immediately attempt to liquidate it)

 

[Ries]

Remember the example of “investor” Paul Singer- the original buyers of argentine debt, historically, dump it when quick payment seems unlikely. They dont lose much, as they are usually big hedge funds who balance the argentine loss agains other gains for home country tax savings. So they dont actually lose much. Then, players like Singer buy it on the secondary market for literally pennies on the dollar, and even when they settle, like Singer, for 50% or 75% of nominal value, they make out like bandits. None of these investors actually inject much capital into Argentina, as they arent paying face value, they buy at a discount, face value includes interest, and none have any moral hazard preventing them from doing it again. Only Argentina suffers.

 

[JeffR]

It always amazes me how presidents, for all intents and purposes, are able to unilaterally saddle their countries with huge amounts of debt. Or in the case of Milei, transfer gold reserves out of the country to destinations unknown.