A Plan for the Resolution of the Argentine Debt Crisis Essay -- Essays

A Plan for the Resolution of the Argentinian Debt CrisisINTRODUCTIONoer the past atomic number 23 years genus Argentina has suffered from one of the worst economic crises of its history. Mired by currency devaluation, diminished business confidence, contracting GDP, and a braggart(a) current accounts deficit, the Argentinian economy is, at very best, weak. Of its problems, Argentinas international debt is of greatest concern. Servicing the debt has created a large financial burden for the Argentine government passing the steps it has been able to take to stimulate economic growth. Since temporarily stopping payment on US$132 billion of debt in 2001 , Argentina has experienced near economic expansion, but this growth has come with large costs. Foreign banks condemnation of the default has made Argentina a pariah in the international enthronization community. Meanwhile, the interest on the outstanding loans is compounding at an astronomical rate increasing Argentinas debt burden significantly. Unfortunately for Argentina, supporting international coronation and reducing its debt are both essential for a sustained economic recovery. These goals will not be achieved through default, even if it is temporary, as banks are the self-imposed moral authorities on debt and investment and are likely to make Argentina pay a high price. Instead, Argentina essential cleverly use debt reduction mechanisms involving third-party purchase of its discounted debt.It will be the primary responsibility of Argentinas newly elected president, Mr. Kirchner, and his administration, to stimulate the countrys feeble economy by reducing the public debt. Downsizing its debt will help Argentina to reestablish itself as a creditworthy nation and urgency economic... ... and Business, .How the debt should be canceled, Debt & instruction Coalition Ireland, .Krueger, Anne O., Crisis Prevention and Resolution Lessons from Argentina, International Monetary Fund, 17 July 2 002, . MERCOSUR, 6 March 2003, . Moye, Melissa, Overview of Debt Conversion, London Debt Relief International Ltd., 2001.Powell, James E., clipping Value of Money, 1 June 2002, . Rhoter, Larry, Argentina Struggles to Meet Debt-Relief Terms. New York Times, 11 February 2003, . A Plan for the Resolution of the Argentine Debt Crisis Essay -- EssaysA Plan for the Resolution of the Argentine Debt CrisisINTRODUCTIONOver the past five years Argentina has suffered from one of the worst economic crises of its history. Mired by currency devaluation, diminished business confidence, contracting GDP, and a large current accounts deficit, the Argentine economy is, at very best, weak. Of its problems, Argentinas international debt is of greatest concern. Servicing the debt has created a large financial burden for the Argentine government limiting the steps it has been able to take to stimulate economic growth. Since temporarily stopping payment on US$132 billion of debt in 2001 , Argentina has experienced some economic expansion, but this growth has come with large costs. Foreign banks condemnation of the default has made Argentina a pariah in the international investment community. Meanwhile, the interest on the outstanding loans is compounding at an astronomical rate increasing Argentinas debt burden significantly. Unfortunately for Argentina, encouraging international investment and reducing its debt are both essential for a sustained economic recovery. These goals will not be achieved through default, even if it is temporary, as banks are the self-imposed moral authorities on debt and investment and are likely to make Argentina pay a high price. Instead, Argentina must cleverly implement debt reduction mechanisms involving third-party purchase of its discounted debt.It will be the primary responsibility of Argentinas newly elected president, Mr. Kirchner, and his administration, to stimulate the countrys feeble economy by reducing the pu blic debt. Downsizing its debt will help Argentina to reestablish itself as a creditworthy nation and spur economic... ... and Business, .How the debt should be canceled, Debt & Development Coalition Ireland, .Krueger, Anne O., Crisis Prevention and Resolution Lessons from Argentina, International Monetary Fund, 17 July 2002, . MERCOSUR, 6 March 2003, . Moye, Melissa, Overview of Debt Conversion, London Debt Relief International Ltd., 2001.Powell, James E., Time Value of Money, 1 June 2002, . Rhoter, Larry, Argentina Struggles to Meet Debt-Relief Terms. New York Times, 11 February 2003, .