[Marxism] Argentinean hardball

Marvin Gandall marvgandall at rogers.com
Tue Mar 9 09:49:17 MST 2004

Argentina is showing how a poor country can use a debt default to
relieve its obligations to foreign creditors – a tactic that has
infuriated the big banks and split the IMF, report the Financial Times
and the Guardian.

The country is suffering under a crushing $100 billion debt burden, and
has been steadily accruing $700 million monthly in interest charges
since it defaulted on its international bond repayments in December,

The IMF has contributed more than $15 billion to help Argentina repay
the big banks and smaller creditors, but has made further loans
conditional on receiving regular repayment and on an agreement being
struck with its bondholders.

The Kirchner government, however, is fighting to direct improved
revenues from revived growth to economic recovery at home. Its efforts
to win further IMF concessions and to give its private creditors a close
financial “haircut” has strong support from the mass of Argentineans
impoverished by the 2001 economic collapse.

A large debt reduction in Argentina would set a powerful precedent for
other poor indebted nations.

Both articles reproduced on www.supportingfacts.com

Sorry for any cross posting.

More information about the Marxism mailing list