If you lent me $20, as a friendly gesture, it would be a matter of honour for me to repay you as soon as I could; if you lent it to me because you wanted to earn a buck or two on the transaction, I would feel just as obliged to pay you, since that is the nature of business. There is an element of trust that keeps it all ticking. We stay in hotels, we eat in restaurants we have our hair cut, we take out a bank loan... and then we foot the bill. That's how it works; otherwise all our interactions would be plagued by distrust and chaos. So why shouldn't Argentina still be chased for compensation for its 2002 default? A nation has an even greater moral obligation to pay its debts than an individual, firstly because it should know better and secondly because its actions set and example for its people to follow.
The indignation voiced by the Argentine government is unjustified and it is only fair that firms do all they legally can to recoup some of their losses. "Might" is not "right" and Argentina needs to understand that. Only a few months ago, on the April 16, the Argentine president sent a bill to Congress calling for the nationalisation of 51% of the 57.4% shares the Spanish oil company Respol held in Yacimientos Petrolíferos Fiscales (YPF). The move caused outrage in Spain and the EU, leading to threats of dire consequences...
The Ghana incident shows that it may take time, but karma always finds a way. Argentina cannot expect to carry on being a law unto itself and keep getting away with it. Potential investors will keep away, while past investors will carry on hounding it. And all the while its honour is compromised.
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