Tango funebre
The Argentine government have defaulted on their US$ 155billion debt and abolished the dollar/peso 1/1 peg that has been in existence for most of the 1990s. The peso is now officially trading at 1.4 to the dollar and unofficially in Argentina at 1.65 to 1.8. There are no two ways about it: the Argentinian banking system is effectively bust. The economy has collapsed. The government’s ability to raise any money is limited.
According to a report by WestLB Panmure, London, there is a persistent rumour that the Argentinian government are discussing the de facto nationalisation of Repsol’s assets, the former state owned YPF, in an order to boost hard currency income.
"This will have profound implications for the brewing industry," says WelstLB in a recent report..
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