Tilted Forum Project Discussion Community - View Single Post - Question regarding Argentina's debt payment of $9.8 billion to the IMF

Jimellow · 12-30-2005, 10:36 PM

According to a written report in this week's Economist, on December 15th, Nestor Kirchner, Argentina's president, announced that his government would repay its entire $9.8 billion debt to the International Monetary Fund.

My question is... How does Argentina suddenly have enough money to pay such a hefty debt off in one fell swoop? Are they just relocating money from somewhere else within their government and using it towards the debt, or are they such a wealthy country that they can pay such a large sum straight up?

The article goes on to mention Brazil clearing its $15.5 billion a few days prior, and I am curious how countries that are so deeply in debt are suddenly able to pay it off all at once?

12-30-2005, 10:36 PM	#1 (permalink)
Jimellow Junkie	Question regarding Argentina's debt payment of $9.8 billion to the IMF According to a written report in this week's Economist, on December 15th, Nestor Kirchner, Argentina's president, announced that his government would repay its entire $9.8 billion debt to the International Monetary Fund. My question is... How does Argentina suddenly have enough money to pay such a hefty debt off in one fell swoop? Are they just relocating money from somewhere else within their government and using it towards the debt, or are they such a wealthy country that they can pay such a large sum straight up? The article goes on to mention Brazil clearing its $15.5 billion a few days prior, and I am curious how countries that are so deeply in debt are suddenly able to pay it off all at once? __________________ Desperation is no excuse for lowering one's standards.