Strong return of investments to Argentina
During last week's Expoagro, a major agricultural fair in the Buenos Aires province, sales of machinery accounted AR$ 8 billion (US$ 552 million). Ok, that may not be a lot of money in U.S. dollar, but that is five times more investment in local currency. That was pushed by the end of the export taxes and more credit availability with the entrance of the Banco Nación, the major state-run bank, at the agricultural investment market and the possibility of loans in dollars.
More important than that is if Argentina approves an agreement held with the houldouts funds in NY in the Senate. The terms of this agreement were just approved by the House of Chambers and will be voted soon by the Senate. If that happens, Argentina will be not in a default status by April 15 by making a deposits to those funds. As a result, the country will be able to finance its debt through the IMF with lower interest rates, finance infrastructure through the World Bank at lower rates and private companies (including agricultural companies) will be able to get cash from foreign banks for investment or debt restructuring.
What do you think will be the impact for agriculture on that?
Re: Strong return of investments to Argentina
Not a sane place to invest money.
Two days ago Warren Buffet stated the mess in Argentina can only end in tears. They already stole all pension funds sever a l years ago to pay interest only on their sovereign debt. The principle is still there, they now are also paying pensions with their funny money.
It is over center and will be/is another Greece. Only difference is they have a large productive agricultural area. It however can not and should not have to bail out that mess. Over population on the "dole" and the idea of "free ice cream" and buy now pay later has caught up to them. Wouldn't touch it with a ten foot pole. Just a sucker punch waiting to happen.