Argentine President Cristina Fernandez
made a surprise announcement on Tuesday that she will use foreign reserves
pay 0ff the countrys $6.7 billion defaulted Paris Club debt.
Below are sorne cossents on the announcement:
BENITO BERBER, LATIN AMERICAN STRATEGIST, RBS IN STAMFORD, CONNECTICUT
‘Although actions taken are positive, they are not part of or presented
part of an overall strategy. It would be better if they shared with us what that means. What does it mean for holdouts, spending, fiscal and debt management of the country?
‘Where are these savings coming from? The central bank reserves are an asset on the balance sheet. You need to give something to the central bank, otherwise you upset their balance sheet, They have the dollars, but do they have the pesos and savings? I don’t know.”
FAUSTO SPORTORNO. CHIEF ECONOMIST ORLANDO FERRERES CONSULTING FIRM, BUENOS AIRES
‘Frorn the country’s financing point of view it’s a good measure and it shows it will to pay. There are enough reserves available in the Central Bank, although it will end up a bit weaker. We’ll have to see how the market reacts. since its (the markets) being affected by the international economic crisis.”
DIONISIO CORNIELLE. DIRECTOR OF CORNEILLE BROKERAGE, BUENOS AIRES
‘The news is favorable in the short-term and well see an interesting reaction in bank (stocks). At the same time we have to be careful, since internally there are still problems regarding doubtful statistics.’
OSVALDO CORNIDE, PRESIDENT, BUENOS AIRES CITY COMMERCE AND INDUSTRY FEDERATION
‘With this announcernent of paying 0ff the Paris Club Debt, 1 believe financing conditions dornestically and abroad will change radically.
JOSE LUIS ESPERT, CHIEF ECONOMIST ESPERT AND ASSOCIATES CONSULTING FIRM, BUENOS AIRES
‘Without a serious macro-economic program it seems really risky to me,
struck by the hatred we have to the (International) Monetary Fund…In the conditions we are in we aren’t going to see great benefits for the country.”.
