Chapter 6- Issue Focus (Argentina, Debt Default)

Chapter 6- Issue Focus (Argentina, Debt Default) 

Key Questions:

1.      Why do the sovereign countries borrow and who are the key players in the sovereign debt market?
2.      Text Box: Authorised for educator use only by Ed Gonsalves, Regents University London. Expiry date 19-Mar-2020. Usage permitted only within these parameters otherwise contact info@thecasecentre.org What were the significant complexities Argentina faced when it embarked on the debt restructuring process? Introduce an Asian country as a comparative case-country that might demonstrate how a sovereign debt crisis was handled differently in this Asian nation? Critically analyze the role of vulture funds in the Argentine sovereign debt crisis.
3.      Can you suggest a possible way out for Argentina from the mess of its debt crisis? What are the takeaways from this crisis for other developing countries?


Ed's Suggested Readings and References:


1.            Almeida Heitor, Cunha Igor, Ferreira Miguel A, Restrepo Felipe. 2014. “The Real Effects of Sovereign Credit Rating Downgrades”. LSE paper. Extracted from http://www.lse.ac.uk/fmg/events/capitalMarket/pdf/CMW-LT-2014-3-Almeida- RatingPaper-13Feb2014wtab.pdf
2.            Blackman, Jonathan I.; Mukhi, Rahul. 2010. “The Evolution of Modern Sovereign Debt Litigation: Vultures, Alter Egos, and Other Legal Fauna”. Law and Contemporary Problems 73: 47–61. Retrieved 2014-07-19. Available at: http://scholarship.law.duke.edu/lcp/vol73/iss4/6
3.            Brooks Skylar and Lombardi Domenico. (2015). Sovereign Debt Restructuring Issues Paper. CIGI papers No. 64–April.
4.            Text Box: Authorised for educator use only by Ed Gonsalves, Regents University London. Expiry date 19-Mar-2020. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Das Udaibir S, Michael G. Papaioannou, and Christoph Trebesch. 2012. “Sovereign Debt Restructurings 1950–2010: Literature Survey, Data, and Stylized Facts”. IMF Working Paper WP/12/203, International Monetary Fund.
5.            David T. Beers and Jean-Sébastien Nadeau. 2015. “Database of Sovereign Defaults, 2015”. Funds Management and Banking Department, Bank of Canada, Ottawa, Ontario, Canada K1A 0G9. Extracted from http://www.bankofcanada.ca/wp- content/up”oads/2014/02/tr101.pdf
6.            Enrique Cosío-Pascal. 2010. “Paris Club: Intergovernmental Relations in Debt Restructuring,” in Overcoming Developing Country Debt Crises, Ed. Barry Herman, José Antonio Ocampo, Shari Spiegel (New York: Oxford University Press, 2010), p. 236.
7.            Eric Toussaint and Julia Goldenberg. 2014. “Vulture funds are the vanguard”, CADTM, 17 October 2014. Extracted from http://cadtm.org/Vulture-funds-are-the-vanguard
8.            Report on Bond Exchanges and Debt Buybacks A Survey of Practice by EC Debt Managers Extracted from
http://europa.eu/efc/sub_committee/pdf/report_on_bond_exchanges_and_debt_buy- backs.pdf
9.            Hornbeck. J.F., (February 6, 2013). “Argentina’s Defaulted Sovereign Debt: Dealing with the “Holdouts” (PDF). Congressional Research Service. Extracted from https://www.fas.org/sgp/crs/row/R41029.pdf
10.        Manasse, Paolo, and Nouriel Roubini. 2009. “Rules of Thumb” for Sovereign Debt Crises”, Journal of International Economics, 78 (2): 192-205.
11.        “Vulture Funds: A Threat to the Poorest Countries and U.S. Foreign Assistance”(PDF). Jubilee USA. (June 2009). Retrieved on 23 July 2014 from: http://www.jubileeusa.org/fileadmin/user_upload/Resources/Vulture_Funds/Stop_Vulture
_Funds_JEFSAAFact_Sheet.pdf
12.        unctad.org | Argentina's 'vulture fund' crisis threatens profound consequences for the International financial system”. Extracted from
http://unctad.org/es/paginas/newsdetails.aspx?OriginalVersionID=783&Sitemap_x005F_x 0020_Taxonomy=UNCTAD%20Home
13.        Oncu, T.S. , Vilches, J. 2015. “Did Argentina 'default'?” Economic and Political Weekly
Volume 50, Issue 4, 24 January 2015, Pages 25-27
14.        Oncu, T.S. 2014. “A sovereign debt story Republic of Argentina vs NML Capital”
Economic and Political Weekly Issue 20, 17 May 2014, Pages 10-11



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