Leon M. Bodevin
April 22, 2002
Professor Cleaver
“Argentina Pays Some of Its Overdue Interest,” Wall Street Journal, October
1, 1984
Main
Point:
Argentina
has paid its foreign creditors $100 million of the $1 billion it owes them in
interest arrears.
Summary:
This payment
comes just in time to be included in 3rd quarter earnings reports.
This payment is part of the agreement
Argentina
reached with the IMF last week.
Argentina has
also agreed to repay the $100 million it borrowed from banks last March. And
banks have agreed to extend to January 15 the deadline for the repayment of $750
million in principal that
Argentina owes
on a $1.1 billion short-term loan.
Argentina will
also be meeting with bankers later this month to figure out how to stretch out
part of its $45 billion foreign debt.
Argentina will
need at least $5 billion to pay loans and interest that will come due this
year.