{"id":18175,"date":"2014-07-02T07:13:31","date_gmt":"2014-07-02T05:13:31","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=18175"},"modified":"2014-07-02T07:14:59","modified_gmt":"2014-07-02T05:14:59","slug":"gouging-the-gauchos","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/gouging-the-gauchos\/","title":{"rendered":"Gouging the Gauchos"},"content":{"rendered":"

Noriel Roubini writes:<\/a><\/p>\n

Though 93% of Argentina\u2019s creditors accepted new terms for their bonds in 2005 and 2010 in two exchange offers, a small group of holdouts sued Argentina in the United States, and, with the US Supreme Court recently ruling on the issue, have now won the right to be paid in full.
\nThe US court decision is dangerous for two reasons. First, the court ruled for the first time that a country cannot continue to pay those creditors who accepted a big reduction (or \u201chaircut\u201d) on their claims until the holdouts are paid in full. So, why would any future creditor who benefits from an orderly restructuring vote for it if its new claims can be blocked by even a single holdout creditor?
\nSecond, if the holdouts are paid in full, the majority of creditors who accepted a haircut can request to be paid in full, too. If that happens, the country\u2019s debt burden will surge again, become unsustainable, and force the government \u2013 in this case Argentina, which is servicing most of its debt \u2013 to default again on all creditors.<\/p>\n

\"Argentinian<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Noriel Roubini writes: Though 93% of Argentina\u2019s creditors accepted new terms for their bonds in 2005 and 2010 in two exchange offers, a small group of holdouts sued Argentina in the United States, and, with the US Supreme Court recently … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[22,13],"tags":[],"class_list":["post-18175","post","type-post","status-publish","format-standard","hentry","category-corruption","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t