The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

The creeping hand of the state

Inside Redrado’s battle for Argentina’s central bank
Redrado’s tenure
The end of the Redrado era: a timeline




The move to grab Argentina’s central bank reserves is the latest in a series of government moves to access cash. With $13 billion of debt to pay this year and a hole in its budget of between $2 billion and $7 billion, the government urgently needs to raise funds.

With no access to the international capital markets until Argentina completes a swap with the holdout investors of its defaulted debt, the government has tried to raise money in several different ways. One avenue was the Venezuelan government, which has bought more than $5 billion-worth of bonds from Argentina since 2005. But with the Venezuelan economy mired in deep recession, the country is no longer able to help its neighbour.

Then in November 2008 the Argentine state nationalized the private pension funds (AFJPs) and got its hands on a pool of Ps80 billion ($20.8 billion). The government said that the move was necessary to shore up pensions, which were losing out as the stock market fell.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree