{"id":15895,"date":"2012-07-08T10:21:37","date_gmt":"2012-07-08T15:21:37","guid":{"rendered":"http:\/\/quotulatiousness.ca\/blog\/?p=15895"},"modified":"2012-07-08T10:21:37","modified_gmt":"2012-07-08T15:21:37","slug":"argentina-to-force-domestic-banks-to-loan-money-at-a-loss","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2012\/07\/08\/argentina-to-force-domestic-banks-to-loan-money-at-a-loss\/","title":{"rendered":"Argentina to force domestic banks to loan money at a loss"},"content":{"rendered":"<p>As the financial situation in Argentina gets more dire, the government is stepping in to <a href=\"http:\/\/www.telegraph.co.uk\/finance\/newsbysector\/banksandfinance\/9379125\/Argentinas-Cristina-Fernandez-to-force-banks-into-loss-making-loans.html\" target=\"_blank\">make things even worse<\/a>:<\/p>\n<blockquote><p>[President Cristina] Fernandez, a center-leftist, is embracing increasingly unorthodox economic policies as she seeks to sustain activity, which analysts say is vulnerable to insufficient credit.<\/p>\n<p>&#8220;We&#8217;re going to tell the 20 principal banks&#8230; they have the obligation to lend for production and for investment,&#8221; Fernandez said in a televised speech.<\/p>\n<p>&#8220;The central bank&#8217;s going to establish the conditions,&#8221; she said, adding that state-run banks should not have to shoulder the entire responsibility for business loans.<\/p>\n<p>She said the loans would carry a maximum interest rate of the Badlar reference rate, which was 11.9pc per year for private banks in June, plus 400 basis points. The minimum loan period would be three years. <\/p><\/blockquote>\n<p>Officially, inflation in Argentina is running around 25%, so forcing banks to loan money out at half the rate of inflation seems like asking them to dig their own economic graves.<\/p>\n<p>H\/T to <a href=\"http:\/\/www.adamsmith.org\/blog\/money-banking\/why-we-really-dont-want-state-control-of-banks-and-their-lending\" target=\"_blank\">Tim Worstall<\/a> for the link.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the financial situation in Argentina gets more dire, the government is stepping in to make things even worse: [President Cristina] Fernandez, a center-leftist, is embracing increasingly unorthodox economic policies as she seeks to sustain activity, which analysts say is vulnerable to insufficient credit. &#8220;We&#8217;re going to tell the 20 principal banks&#8230; they have the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[465,25],"tags":[492,436],"class_list":["post-15895","post","type-post","status-publish","format-standard","hentry","category-americas","category-economics","tag-argentina","tag-banking"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-48n","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/15895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=15895"}],"version-history":[{"count":1,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/15895\/revisions"}],"predecessor-version":[{"id":15896,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/15895\/revisions\/15896"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=15895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=15895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=15895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}