Title is a bit misleading as it mostly discusses the 1995 bailout of Mexico before transitioning to Argentina near the end, but it's a good overview of the ESF.
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Scott Bessent's $20 billion dollar gamble on Argentina
Title is a bit misleading as it mostly discusses the 1995 bailout of Mexico before transitioning to Argentina near the end, but it's a good overview of the ESF.
Blockchain
Well-known member
Not sure you can accurately compare Mexico and Argentina. Honestly sounds like unless Milei is successful with his big push to reform taxes and other things it will be tough. Lots of corruption in both countries but things actually work in Mexico well and its proximity to the USA helps. It does not seem like things work well in Argentina.
Well it's only been used once before, and they have to be careful because it's not easy to replenish. I read somewhere that post-Mexico, the US Congress voted to place serious restrictions on its future use which then exacerbated the Asian crisis in 1997, because the US was unable to intervene in the early stages when it's most meaningful.
Nasdaq
Well-known member
Interesting. You are right. I had no idea. Just assumed there was a huge balance and it says there is only about $43 billion in it. Surprising that they would earmark half of it for Argentina.
Finance Prof
Well-known member
Looks like big American banks won't pony up the big $20 Billion private loan for Argentina.
Rick
Active member
How long can this pumping scheme go on for?
Finance Prof
Well-known member
Until they run out of other people's money coming in.
Argentina is going to need billions and billions in 2026 to repay debt.
www.upi.com
Argentina must pay more than $10 billion in debt in first half of 2026 - UPI.com
Argentina must pay more than $10 billion in external debt during the first half of 2026. The country's total debt exceeds $300 billion.
www.upi.com
VINO
Well-known member
Bessent just cancelled his trip to Argentina. Trouble in paradise? 🤣
www.ambito.com
Scott Bessent suspende su visita a Argentina: un giro que enfría la luna de miel entre Javier Milei y Donald Trump
La cancelación del viaje del secretario del Tesoro estadounidense llega en un momento en que el funcionario enfrenta críticas internas por el salvataje financiero al gobierno libertario.
www.ambito.com
lemonade
Well-known member
It seems like Argentina's only hope for the near term is continuing to get billions and billions of dollars to pay off old debt.
Caputo confirms negotiations for new bank loan to cover January debt - Buenos Aires Herald
The credit could reach US$7 billion and would cover maturities estimated to be around US$4.2 billion
buenosairesherald.com
Indeed. I've said this before but Argentina has a serious liquidity problem the next few years and they need outside help to make it to the other side.It seems like Argentina's only hope for the near term is continuing to get billions and billions of dollars to pay off old debt.
Caputo confirms negotiations for new bank loan to cover January debt - Buenos Aires Herald
The credit could reach US$7 billion and would cover maturities estimated to be around US$4.2 billionbuenosairesherald.com
Uncle Wong
Well-known member
I guess it is ok if they can keep getting billions in loans but eventually they have to figure things out. Their net reserves still look like they are deeply negative. Gross reserves don't seem to be anywhere close to the targets set by the IMF.
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