In Rio de Janeiro
After busy summer Argentinian soap opera central bank is nearing its conclusion. Justice recently restored two decrees of President Cristina Kirchner, allowing it to dispose of some funds from the central bank to pay the cost of debt. In December, the head of state was taken by surprise Congress, where opposition has a majority, by ordering the establishment of two funds, called the "Bicentennial", one of 4.38 billion dollars the other 2.18 billion, respectively, to pay interest on the debt in 2010 and multilateral creditors.
At the time, the move had been blocked by Martin Redrado, the president of the central bank, on behalf of the organization's autonomy, and justice upheld the ban.Following a showdown with Congress, Redrado was eventually forced to resign and be replaced by Mercedes Marco del Pont, an economist who has always advocated that the central bank depends on the government.
"Mattresses security"
The volte-face of justice is therefore an important political victory for Cristina Kirchner. The opposition has promised to veto at a meeting on April 7 this year, but it remains poorly organized. If it fails to convince, mainly because of proposing an alternative option to pay interest on the debt, considerable this year.
In theory, it would suffice to Buenos Aires to borrow at lower rates and thus postpone the deadlines, but this possibility is prohibited. In 2005, the renegotiation of its debt of more than 100 billion dollars had indeed attracted only 76% of creditors.The remaining quarter has launched legal proceedings in the world blocking any intervention in the financial markets. To justify the use of central bank Deputy Carlos Heller recalls that its reserves reached a record 45 billion dollars. "We do not need a safety cushion as important. Especially with the trade surplus expected this year, the puncture to pay the debt will be painless, "he says.
Ecstatic, the government announced it would open from April 14 a new renegotiation of its debt to creditors who had rejected in 2005. Holders of securities totaling $ 29 billion, including interest, these small shareholders and hedge funds, mainly from Italy, Japan, the United States and Germany, will be offered a new opportunity, probably more generous. The goal is to attract at least 60% of them.
Argentina hopes to turn the page of the default of 2001, the largest in history.
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