So that Argentina will not have to cry, again

Sir, If Argentina, in a sovereign way, would just offer to include in the current restructure a little clause that states that if they were ever to take on new foreign public sector debt, all of it’s outstanding foreign debt would come due, then the future of that great country would truly shine bright.

As is, the recipients of any new exchange bonds will worry that the debt alleviation given will again tempt foreign investment banks to build up new short term exposure; as is, the argentine citizens will only have to brace themselves for history to repeat itself. Today more important for Argentina (and many other) than to solve its current debt overhang is to make sure it does not happen again. Doing so will open up investment flows to the private sector, Basel [Committee] willing, the only sector where these flows should always have gone to.

Sent to FT on November 24, 2004