MilHojas
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Milei struggles to unlock global capital markets for Argentina
- Thread starter MilHojas
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Trust is the key issue, can you trust Milei and his government?
Efficiency? Transparency?
LuckyLuke
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"Without market access, the country’s economic growth will be stunted and it will be unable to pay back the $57bn it owes to the IMF."
“There’s a good chance that if the government does well at the elections, spreads fall and it will start being able to roll over debts,” he said. “Then we enter a virtuous cycle where reserves build and Argentina becomes a more attractive investment.”
Did you catch that? Let's translate it.....Argentina is still UNABLE to pay down it's debt because it lacks foreign reserves. It needs to(borrow more) "access" international markets to REFINANCE it's debt at more favorable rates to extend it's INABILITY to pay them. By continuing to (not pay) "roll over" it's debt, the country will "build" reserves and "become attractive".
Outstanding analysis. Never mind that the BCRA will still have negative net foreign reserves at the end of this, investors only care that you successfully borrow more money.
“There’s a good chance that if the government does well at the elections, spreads fall and it will start being able to roll over debts,” he said. “Then we enter a virtuous cycle where reserves build and Argentina becomes a more attractive investment.”
Did you catch that? Let's translate it.....Argentina is still UNABLE to pay down it's debt because it lacks foreign reserves. It needs to
Outstanding analysis. Never mind that the BCRA will still have negative net foreign reserves at the end of this, investors only care that you successfully borrow more money.
