South American Real Estate News

September 2014 Argentina’s new Report Card

Post available in: English

A month is long time in politics

n June 2014 economists and industry watchers were becoming slightly optimistic that Argentina was starting to become a more responsible world citizen. They had settled the outstanding Hague Rulings against them, settled the YPF nationalization issues, and had modified the inflation indicators as requested by the World Bank and others. The thought was if this continued the drain on US Dollar reserves would reverse and indeed fresh capital might start coming in.

However by September 2014 it had all gone downhill. They out of pride, ignorance or incompetence failed to negotiate a settlement with the Hedged Funds  ( they had 10 yrs to do this ) they owed a relatively small amount of money to, leading the country into an unnecessary new default.

The effect was to tip the country into a full-blown recession or worse.

Unless Argentina grows up and shows more respect to international law and institutions they will continue to be blacklisted as a rogue state. The continual pattern of encouraging international investment then once it is in place strangling its ability to get a commercial return on investment so they can steal it at a low price has left the country starved for capital.

Only a complete attitude turn around will change this.


(Visited 67 times, 1 visits today)

About Gateway to South America

Gateway to South America was established in 2006 as a single office in Buenos Aires. The company has since expanded into a vibrant regional network, servicing the Southern Cone clients in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay with professional real estate marketing services. If you enjoy reading our news site please share it on your social media below.

Post available in: English


Comments from our readers

Visit us on LinkedInVisit us on FacebookVisit us on TwitterVisit us on PinterestCheck our RSS Feed