Argentina agrees to borrow $5 billion from Wall Street banks

[Judi Lynn]

Source: Gulf Today

Argentina agrees to borrow $5 billion from Wall Street banks
January 31, 2016

BUENOS AIRES: Argentina’s central bank reached terms with seven Wall Street banks for $5 billion of loans as the government looks to bolster reserves ahead of talks with holdout creditors next week.

The one-year loan, finalised on Friday, will be backed by sovereign bonds, according to an e-mailed statement from the central bank.

Argentina has been seeking to shore up its central bank reserves after years of currency controls and policies that discouraged investment and depleted the country’s supply of dollars.

Unable to tap international bond markets because of a decade-long feud with creditors left over from the nation’s 2001 default, the country’s cash hoard dropped to a nine-year low last month.

Read more: http://gulftoday.ae/portal/99b22a29-7e2c-43c3-91ba-acaa7dedb5a6.aspx

[forest444]

1. And this was arranged by the same pinhead that orchestrated the last such deal in 2001

http://www.democraticunderground.com/110846640

And we all know how that turned out.

Thanks as always for keeping us informed on Argentina's ongoing right-wing crisis, Judi.

[Depaysement]

2. Step One in Macri's privatization plan

Paul Singer must be salivating.

[Gman]

3. Crawling into the same hole

Greece got into. They'll own Argentina like they do Greece.

[elias49]

4. Well there goes Argentina's identity

How long before we own most of Central and South America?
"Hey, have we got a loan for you! Easy repayment schedule!"

[Turbineguy]

5. Making a deal with the devil.

They are going to get fucked.

[forest444]

8. Here's hoping they can impeach Macri before then.

Congress in currently in recess; but when they return on March 1, it's quite possible the opposition will come together on the issue of Macri's numerous unconstitutional decrees. He's basically been ruling be decree since he took office (December 10), despite being constitutionally obligated to call recess sessions of Congress for the passage of substantive legislation (and his edicts have indeed been very substantive).

Impeachment could be cobbled together because while you need a two-thirds majority in both houses for impeachment in Argentina, Macri's far-right party (PRO) holds only 16% of House seats and 6% in the Senate. The centrist (but Catholic-dominated) UCR caucus is still giving him cover; but if things really begin to fall apart, the UCR will bend like reeds.

You know, Macri won only narrowly - by 2.6%, which is the narrowest presidential margin in Argentine electoral history. He won with the support of big media, which launched a no holds-barred, Breitbart-style attack on his predecessor (and her party's nominee) for years.

For Argentine voters, a teachable moment as President Obama might say.

[Earth_First]

7. HRC's friends to the rescue! nt