Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bonnie Bear who wrote (14502)	7/15/1998 5:14:00 AM
From: Alex	Read Replies (1) \| Respond to of 116759

Hi Bonnie. Long time no chat. Thanks for that link. Re: revaluing gold - two points. 1. They require an 85% majority vote to sell gold or accept it for payment. They carry it on their books at $35 for a total value of $3.6 billion - about $32 billion if revalued at todays prices. 2. Interesting to note that between 1976-80 they sold one third of their gold with the stated purpose of reducing the role of gold in the international monetary system - we all know what happened to gold next VBG. Looks like Pakistan is fighting for a place in the IMF line but the cupboard is bare................... Default Imminent as Pakistan's Credit Rating Slashed Rating Now Lower than Basketcase Indonesia's Standard & Poor's, the US credit rating agency, yesterday slashed Pakistan's sovereign credit rating and warned the country was in real danger of going bankrupt within the next two months. The move, which comes six weeks after Pakistan provoked international sanctions following its decision to test nuclear weapons, means Pakistan has the lowest credit rating of any country in the world. Pakistan was downgraded two notches to a rating of CCC - one below Indonesia, previously the lowest rated country. A sovereign credit rating is designed to measure the likelihood a country will default on its debt obligations. S&P warned Pakistan would be unable to service interest payments on much of the $42bn it owed to official and private creditors if the country's foreign exchange reserves continued to diminish at the same rate as in the last six weeks. Pakistan's foreign exchange reserves have fallen from $1.2bn to about $700m since sanctions were imposed in late May. This amounts to just three weeks worth of imports. More worryingly, Pakistan's foreign exchange reserves have fallen to less than 10 per cent of the level of the country's short-term debt obligations, which total $10.2bn. "Reserves should be at least 100 per cent of short-term debt obligations," said an economist at an investment bank in London. Yesterday's downgrade means that Pakistan is facing the genuine possibility of default by September unless the International Monetary Fund or another external creditor steps in with emergency assistance. Sartaj Aziz, Pakistan's finance minister, was due to return last night from a trip to the United Arab Emirates and Saudi Arabia, where he is believed to have gone with a fresh request for balance of payments support to help shore up the country's foreign exchange reserves. The Financial Times, July 15, 1998