Argentina’s plan to escape debt default follows political rather than financial logic

The Economist

In an article written by Haley Cohen for The Economist’s Americas ViewJuan Cruz Díaz from Cefeidas Group was quoted about the Argentine government plan for paying bonds locally:

“Why announce a plan that seems doomed to failure? The president’s rationale is probably more political than practical. “By making this announcement, Ms Fernández showed that she is in charge of the political agenda and was able to catch the opposition off guard,” says Juan Cruz Díaz of Cefeidas, a research group. Of her leading opponents, only Mauricio Macri, the mayor of Buenos Aires and a contender for the 2015 presidential election, said unequivocally that he and his party would vote against the proposed law. But it is the votes of the bondholders that may end up mattering more.”

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