Argentina Is Facing The Prospect Of Another Massive Default

CNBC: As ‘do-or-die’ IMF talks draw to a close, Argentina faces prospect of another default

* Last week, the IMF sent a team of economists to Buenos Aires for the fund’s first formal negotiation with Argentina’s newly-elected government.
* The talks, which are scheduled to end on Wednesday, are being held in order to avoid the prospect of history repeating itself.
* Jimena Blanco, head of Latin America at Verisk Maplecroft, told CNBC that the risk consultancy had assigned a 77% probability that Argentina would default before the end of the year.

Argentina is on the cusp of registering another devastating default, analysts have told CNBC, as international investors anxiously await the outcome of “do-or-die” debt restructuring talks.

Argentina’s government has said it needs to restructure $100 billion in debt, including $44 billion to the International Monetary Fund (IMF).

Last week, the IMF sent a team of economists to Buenos Aires for the fund’s first formal negotiation with Argentina’s newly-elected government.

The talks, which are scheduled to end on Wednesday, are being held in order to avoid the prospect of history repeating itself.

In 2001, Argentina defaulted on around $100 billion of debt. It triggered the worst economic crisis in the country’s history and resulted in millions of middle-class citizens falling into poverty — a consequence many in Argentina blame on the fiscal policies enforced by the IMF at the time.

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Update #1: Argentine bonds teeter on signals expected from IMF about debt revamp talks (Reuters)
Update #2: IMF Cannot Offer Argentina a Haircut on Loan, Georgieva Says (Bloomberg)

WNU Editor: One of my favourite sayings is the following .... Fool me once, shame on you. Fool me twice, I am an idiot. The IMF and the other lenders are idiots. Argentina's government has a long history of borrowing money, and then demanding partial payments and/or not paying it back. No one should lend them money.