Why Argentina Consistently, and Unapologetically, Refuses to Pay Its Debts
By¡No!
A visitor at the Museum of Foreign Debt in Buenos Aires. To the right is an image of former president Carlos Menem, whose efforts to control inflation produced a heavy debt load for the country.
Argentina’s fight with foreign banks and bondholders is more than just business. It’s part of the national psyche, enshrined in a special museum at the business school at the University of Buenos Aires. The Museum of Foreign Debt is nothing fancy. There are a few flimsy panels plastered with grainy photos, dates, text, and graphs.
Oh, but the saga portrayed on those panels! Banks, bond investors, and the International Monetary Fund flood crooked regimes with overpriced credit. The Argentine economy collapses, and the people suffer. International markets are roiled. It happens time and time again. The story has all the emotions of a good tango…
Why Argentina Consistently, and Unapologetically, Refuses to Pay Its Debts
