After the partial default called yesterday by rating agencies on Argentina's sovereign debt, news came that negotiations between the government and the provinces on revenue-sharing had taken a sudden turn for the better. San Juan governor Alfredo Avelin said the suggestion was that 60% of the arrears would be paid in cash, and the balance in Provincial Dues Cancellation Notes (Lecop).
S&P said provinces may face a selective default if they enter into debt restructuring offering substantially less than the original contracted amount, but said yesterday's selective default rating on Argentina does not directly impact the global scale ratings of other Argentine entities.
Share prices rose sharply on the news: "The market was driven by speculation about the possibilities that the government will be able to close a deal with provinces today, so that (President Fernando) De la Rua can take the trophy to (US) President George Bush in his personal interview next Sunday," said a trader at a local brokerage. "The news that the Alliance governors had defined a framework agreement with (Cabinet Chief Minister Chrystian) Colombo moved the market sharply higher as from midday," he said. But the market later fell back as opposition (Judicialist) governors downplayed the suggestions of an imminent deal.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment