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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (6329)	9/10/1998 2:34:00 PM
From: Peter Singleton	Respond to of 9980

Bosco, Lots of insight into the interlocking nature of the global financial system in that short news release on Argentine Telecom's $87M financing from Japan's Eximbank. My guess it's to cover telecom equipment purchases from Japanese firms. The interest and exchange rate risk on the yen-carry credit is covered by Chase Manhattan (with I'm sure a further hedge), and JP Morgan owns 10% of Argentine Telecom. It's a good argument for the free capital flows in the international economy (good for business) ... one risk in the capital controls starting to emerge ... but it also is a reminder of the interlocking exposures to shocks in the system. Peter