Alicia Garcia Herrero & Junyu Tan (Natixis) | After the pre-emptive announcement to suspend all foreign debt repayments until discussions for an IMF bailout are completed, on May 18 Sri Lanka stepped into the dangerous path of a sovereign default as it missed the 30-day grace period on its USD 78 million worth coupon payments originally due April 18. Against this backdrop, investors’ key question is how deep the debt…
ATHENS | Via Macropolis | It should come as no surprise that in a the country where a large part of the political establishment is comfortable with the notion that some sort of conspiracy drove the country to bankruptcy, the same key players should spend the last few days in a hopeless debate on the recent developments in Argentina.
MADRID | The Corner | Juicy day for European markets, peripheral and emerging countries, after Portuguese BES announced €3.6 billion losses in 1S14, which reduce its CT1 to 5%, below the 7% asked in Portugal. Besides, we’ll be very attentive to how Argentina’s so-called “second default in 12 years” (we are working on an analysis explaining why the real problem lies on the US judge’s sentence) unfolds –late on Thursday S&P rated the country as selective default after it didn’t come to an agreement with a group of its bond-holders. Stay tuned!