Though the Argentinean government is already into its third week of a debt buyback programme 
(has bought back $430 million worth of its 2008 and 2009 bonds) to bolster investor confidence, but it hasn’t been of much help. “Bond buyback by government has boosted some investors’ confidence. But still a lot more needs to be done to restore Argentina’s lost credibility,” P. B. Henry, Professor at Stanford University and an expert of Argentinean issues tells B&E. Certainly at 50% (an estimated $140 billion) of GDP (market exchange rate), Argentina’s public debt is still large. In fact, this is only a bit lower than the level (53%) immediately before the 2001 mayhem which had seen the economy shrivel by 15%, unemployment rate mount to 21% and poverty engulf 56% of Argentines. Moreover, the current estimate also does not include $23.5 billion in debt held by the holdouts (those who refused to accept the terms of the 2005 restructuring). If this is included, the ratio is surely over 60% of GDP.....Continue
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
Read also :-
(has bought back $430 million worth of its 2008 and 2009 bonds) to bolster investor confidence, but it hasn’t been of much help. “Bond buyback by government has boosted some investors’ confidence. But still a lot more needs to be done to restore Argentina’s lost credibility,” P. B. Henry, Professor at Stanford University and an expert of Argentinean issues tells B&E. Certainly at 50% (an estimated $140 billion) of GDP (market exchange rate), Argentina’s public debt is still large. In fact, this is only a bit lower than the level (53%) immediately before the 2001 mayhem which had seen the economy shrivel by 15%, unemployment rate mount to 21% and poverty engulf 56% of Argentines. Moreover, the current estimate also does not include $23.5 billion in debt held by the holdouts (those who refused to accept the terms of the 2005 restructuring). If this is included, the ratio is surely over 60% of GDP.....ContinueSource : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
Read also :-
