I cry for you Argentina!
Argentina is likely to default on its foreign debt and needs to restructure its $110 billion debt.
The first of Argentinian defaults came in 1827, just 11 years after its independence. The most recent default before the current one came in 2014. In between, there were six others of varying size and form.
This time Argentinian authorities succumbed to the same temptation that tripped up their predecessors. They built short-term foreign-currency debt to reduce their interest charges and the budget deficit. In other words, they borrowed from other countries to ensure they could pay back their previous loans and cover Argentina’s public expenses. Read More