Post by scumbuster on Sept 22, 2021 7:01:26 GMT -5
The Latest: Argentina, Colombia warn of debt crisis
The presidents of Argentina and Colombia warned the U.N. General Assembly that increasingly strapped emerging markets could default on their foreign debts, and called on multilateral lenders to push for changes that ease conditions.
Argentina’s Alberto Fernández said in a video message there is clearly “risk of a generalized debacle of foreign debts for developing nations,” and said there should be a “reconfiguration of global financial architecture.”
Hours earlier, his Colombian counterpart Iván Duque told diplomats assembled in New York that governments increased their indebtedness and fiscal deficits to cope with COVID-19, but credit ratings agencies still evaluate them with “pre-pandemic eyes.” He called on multilateral lenders to create a new consensus on acceptable minimum risk criteria that reflect the post-pandemic reboot period.
“Otherwise, in the short term, in the face of demand for debt and generalized increase in the cost of capital, it could precipitate a debt crisis,” Duque said.
He also proposed excluding all expenses and investments directed toward climate change from the assessment of fiscal deficits.
Credit ratings agency Standard & Poor’s cut Colombia’s sovereign bond rating to junk in May, and Fitch Ratings did the same in July. Duque didn’t make explicit reference to his country’s downgrades.
Fernández, for his part, called Argentina’s indebtedness to the International Monetary Fund “toxic and irresponsible.” His predecessor, Mauricio Macri, arranged a $57 billion loan that Fernández has previously said was unpayable. His country has received $45 billion of the total, and the president refused to accept the remainder.
us.yahoo.com/news/latest-un-chief-warns-world-140151384.html
The presidents of Argentina and Colombia warned the U.N. General Assembly that increasingly strapped emerging markets could default on their foreign debts, and called on multilateral lenders to push for changes that ease conditions.
Argentina’s Alberto Fernández said in a video message there is clearly “risk of a generalized debacle of foreign debts for developing nations,” and said there should be a “reconfiguration of global financial architecture.”
Hours earlier, his Colombian counterpart Iván Duque told diplomats assembled in New York that governments increased their indebtedness and fiscal deficits to cope with COVID-19, but credit ratings agencies still evaluate them with “pre-pandemic eyes.” He called on multilateral lenders to create a new consensus on acceptable minimum risk criteria that reflect the post-pandemic reboot period.
“Otherwise, in the short term, in the face of demand for debt and generalized increase in the cost of capital, it could precipitate a debt crisis,” Duque said.
He also proposed excluding all expenses and investments directed toward climate change from the assessment of fiscal deficits.
Credit ratings agency Standard & Poor’s cut Colombia’s sovereign bond rating to junk in May, and Fitch Ratings did the same in July. Duque didn’t make explicit reference to his country’s downgrades.
Fernández, for his part, called Argentina’s indebtedness to the International Monetary Fund “toxic and irresponsible.” His predecessor, Mauricio Macri, arranged a $57 billion loan that Fernández has previously said was unpayable. His country has received $45 billion of the total, and the president refused to accept the remainder.
us.yahoo.com/news/latest-un-chief-warns-world-140151384.html