Not exactly a shocking headline since Argentina apparently loves to default on its foreign debt … or at least threaten to default.
(Bloomberg) — Argentina is unable to repay its $45 billion debt with the International Monetary Fund under current negotiating conditions, influential Vice President Cristina Fernandez de Kirchner said Wednesday, diminishing the possibility of an agreement with the country’s largest creditor.
“We can’t pay because we don’t have the money to pay,” Fernandez de Kirchner said at an event in Buenos Aires, adding that the terms and conditions are “unacceptable.”
Fernandez de Kirchner’s comments come after discussions between Economy Minister Martin Guzman and IMF Managing Director Kristalina Georgieva in Washington on Tuesday that what was described by both sides as a “very good meeting.”‘
Very good meeting? Argentina’s Credit Default Swap was cut in half to a whopping 952.3 on the “rescue” by the IMF and creditor restructuring.
Argentina’s 2-year sovereign bond rose to 44.960 (while not 100, it is still better than Venezuela’s 10.859).
Argentina’s inflation rate is 46.5% while Venezuela’s inflation rate is 2665% as of January 2021.
Nothing has been the same in Argentina since the rise of Juan Peron and his wife Eva in 1946.
But Argentina has great steaks! Like at Hierro Parrilla in Buenos Aires. That is probably the reason for the continuing bailouts of Argentina … so IMF representatives get to eat great steaks!