Argentina Faces a Deadline for Hedge Fund Payments
Argentina
faced huge financial problems with government bond related to creditors led by
NML capital, so Argentina is on the verge of default if they cannot manage this
daunting pressure from creditors and US Supreme Court. Creditors are in a group
of New York hedge funds and they sued the Argentina for full payment of debt after
refusal of decrease the Argentina's burden by debt restructuring. The whole
money to be paid includes not only the interest of debt for holdouts, but also
extra expenses related to me-too claims. It means that if Argentina gives the
full payment to this NML case, other creditors also require receiving full
payment for their debt and it will cause huge expense for Argentina. Finally,
creditors sued Argentina in the US Supreme Court and US judge ordered that a payment
of restructured bonds is illegal and Argentina should pay a full payment before
deadline. Argentina has to make serious decision whether to pay the debt in
full payment or just leave the debt and default all the foreign reserves.
I think both of the creditors and Argentina government needs to
compromise their benefit each other, because if Argentina really is in the outright
default, it is not beneficial for both of them. Creditors should allow the debt
restructurings, because full payment of debt will result in collapse of
Argentina's fragile economy. Also, Argentina has to change their hostile
position and become negotiable with US creditors. If Argentina turned to
default status for all the foreign reserves, not only creditors become much
harder to receive the debt, but also Argentina's financial security become
worse than before. Therefore, practical negotiation between the creditors and
Argentina is needed for both of them.
SOURCE: Eavis, Peter. "Argentina Faces a Deadline for Hedge Fund
Payments" the New York Times, 30
June 2014. web. 30 June 2014
For more
information, http://dealbook.nytimes.com/2014/06/30/argentina-faces-a-deadline-for-hedge-fund-payments/
Argentina-Brazil Rivalry
Too Hot for Latin Brotherhood
During the World Cup in Brazil, rivalry of Argentina and Brazil
is getting more severe between soccer fans, because both of them were the
strongest rivals in soccer for a long time and there is a chance that they will
meet at the final match of world cup for the first time. Some trivial conflicts
already occurred in the Stadiums between those fans and the contentions were
intensified after FIFA's decision to allow the sale of alcohol during the match.
Even they have historic and cultural ties, their dominant passions about soccer
have grown into severe rivalry and the sense of competition remained still
stubbornly in this year's World Cup. This rivalry is much stronger than any other
historical matches, because there is possibility that both of soccer team can
meet in the final match of World cup for the first time. However, intensified
rivalry caused contentions for each other during the World cup match.
I didn't expect that rivalry was so intensive between two
countries, because they are neighboring country in same continent and share the
Latin brotherhood. They have very similar culture and society, because they are
under the same cultural area of Latin America. Furthermore, Brazil and Argentina
share a common border, so interaction between both countries is very active and
easy. Also, they have common passions about soccer, because they are the most
powerful soccer teams in the world. However, I think that is the reason why
their competitive rivalry for soccer is severe despite same cultural
background.
SOURCE: Panja, Tariq. "Argentina-Brazil Rivalry Too Hot
for Latin Brotherhood". Bloomberg.
July 2 2014. Web. July 2 2014
For more information, http://www.bloomberg.com/news/2014-07-01/argentina-brazil-rivalry-too-hot-for-latin-american-brotherhood.html
Argentina Vice President
Amado Boudou: Charged With Corruption and Bribery
Argentina's vice president, Amado Boudou, committed corruption
by using a shell company for business deals incompatibly. Boudou became
Argentina's vice president in 2011 and was economy minister before the term.
The shell company that Boudou managed was the printing company and he gave tax
break for the company unfairly. Some opposition politicians impeached Boudou
for committing corruption. Even he insisted his innocence for this crime, he is
still on the trial waiting for the decision of court.
When I read this article, I thought it is very difficult to avoid
temptation of corruption especially for politicians with high ranking. If the
person has influential power in public position, it is easy to use the power
unfairly. Also, finding a chance for earning money through informal way becomes
easier, because they manage the law. The shell company that related to Boudou’s
corruption was one of the examples. This is the reason why investigation for
politician should be intensified.
SOURCE: Guion, Payton. "Argentina Vice President Amado
Boudou: Charged With Corruption and Bribery" Latin post. 29 June 2014. Web. 29
June 2014
For more information, http://www.latinpost.com/articles/15967/20140629/argentina-vice-president-amado-boudou-charged-with-corruption-and-bribery.htm
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