Free Newsletters - Space News - Defense Alert - Environment Report - Energy Monitor
. Earth Science News .




POLITICAL ECONOMY
Argentina blasts rating agencies
by Staff Writers
Buenos Aires (UPI) Oct 17, 2012


disclaimer: image is for illustration purposes only

Argentina lashed out at international rating agencies for critical reports on the country's economy which it said were exploited by financial speculators.

Argentine Economy Minister Hernan Lorenzino likened the rating agencies to pirates and accused them of terrorism.

The credit rating agencies, he said, colluded which speculators to produce "terrorist reports in order to make some profit out of it."

Argentine pronouncements relate to its down payment on a Bonar X dollar bond for $200 million. Buenos Aires says crediting ratings reports on Argentina cast doubt on the country's ability to make timely repayments on the planned new bond issues.

The Argentine government is seeking to raise more than $1 billion in a debt sale from an existing Bonar X series initiated in 2007. The government is hoping to market the bonds with an attractive interest yield of up to 7 percent.

Argentina sparked controversy last week when the country's northeastern Chaco province surprised traders by settling its dollar debts in Argentine pesos. Chaco's action reignited speculation the Latin American country would have trouble repaying sovereign debts, including any repayments likely to fall due on new bond issues.

Argentina has singled out Moody's ratings agency for special criticism because of its last assessment of Argentina's financial outlook. There was no immediate reaction from Moody's to Lorenzino's comments.

Lorenzino attacked Moody's for a Monday rating action which, according to him, issued a negative outlook on the issue of bonds in Argentina after Chaco paid its dollar debts in pesos.

"We'd like to deny the statements issued by the credit rating agency since no regulations have been changed in the Argentine bonds market," Lorenzino said, referring to the peso transaction.

"Once again, a speculative attack mounted by a credit rating agency and some media groups is directed at us when we are about to meet some debt payments," he said.

He accused the international rating agencies of walking along with international speculators by setting "terrorist reports" intended to frighten investors.

"Credit rating agencies = speculators," Lorenzino declared. "They want to lower the bond price a day before the payment so they can make some profit out of it. An old pirate trick," the minister wrote on Twitter.

In earlier comments Lorenzino questioned the credit rating agencies' "behavior" and their use of financial analysis to develop "self-fulfilling prophecies."

The 2009 financial crisis and the current international financial crisis had shown the rating agencies' methods to be inadequate, he said.

Citing Argentina and Greece together as examples, he said Greece in 2009 had the investment grade but the rating agencies' downgrades intensified its difficulties.

In the case of Argentina, he said, "the process has been the other way round, for the last five years we've been rated as a country in crisis with a high debt risk."

"For the agencies, Argentina is constantly about to get into a crisis, but Argentina has grown for the last 10 years and fulfills its financial obligations," Lorenzino said.

International ratings agencies have also faced criticism in the European Union over their ratings actions in the eurozone, including Greece, Germany and Spain.

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





POLITICAL ECONOMY
China's Wen: economy starting to stabilise
Beijing (AFP) Oct 17, 2012
China's Premier Wen Jiabao said the economy began stabilising in the past three months and should meet 2012 targets, state media said Wednesday, a day before third-quarter growth data are released. "It can now be confidently said that China's economic growth is basically stabilising," the Xinhua news agency quoted Wen as saying during seminars held October 12-15. "With various policy mea ... read more


POLITICAL ECONOMY
Tiny travelers from deep space could assist in healing Fukushima's nuclear scar

Climate change helps drive N. America disasters: re-insurer

French broadcaster apologises to Japan over Fukushima gag

Planning can cut costs of disasters: World Bank

POLITICAL ECONOMY
Mapping The Universe In 3-D

Physicists crack another piece of the glass puzzle

Worldwide smartphone users top 1 bn: report

New paper reveals fundamental chemistry of plasma/liquid interactions

POLITICAL ECONOMY
LSU research team shows negative impact of nutrients on coastal ecosystems

Why Are Coastal Salt Marshes Falling Apart?

Mathematics and the Ocean: Movement, Mixing and Climate Modeling

Coral reefs and food security: Study shows nations at risk

POLITICAL ECONOMY
Ice sheet retreat controlled by the landscape

1 by land and 1 by sea

NASA's Operation IceBridge Resumes Flights Over Antarctica

Antarctic Sea Ice Reaches New Maximum Extent

POLITICAL ECONOMY
U of M scientist contributes to mapping of barley genome

Green leaf volatiles increase plant fitness via biocontrol

Viral alliances overcoming plant defenses

Pollenizer Research Should Help Seedless Watermelon Farmers

POLITICAL ECONOMY
Could a Hurricane Ever Strike Southern California?

Study advances understanding of volcanic eruptions

Pakistan floods kill 455, affect five million

Tropical cyclones are occurring more frequently than before

POLITICAL ECONOMY
Life expectancy shoots up to 60 in SAfrica: study

Africa faces spike in older people living with HIV

Liberia,ICoast to hold joint manoeuvres on border by end of year

Liberian president in Ivory Coast to discuss border security

POLITICAL ECONOMY
Novel chewing gum formulation helps prevent motion sickness

Discovery of two opposite ways humans voluntarily forget unwanted memories

The evolutionary origins of our pretty smile

Outside View: Give us a little credit




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement