Reborn as the richest man in India.

Chapter 522 Malicious default

Of course, Jogo is paying close attention to the situation in Mexico.

So when these things happened, Qiaogo felt funny in his heart.

He laughed at those two families who were too greedy.

There are clearly some bad signs, such as political instability and reduced foreign investment.

But the two of them were obviously holding on to a bit of luck.

Later, Qiao Ge also learned about some specific situations. The two companies were afraid of withdrawing early and losing hundreds of millions of dollars.

I hope I can hold on for a few more months.

It's a pity that these crashes happen in the blink of an eye, and we can't give them a few months.

Judging from the news Qiao Ge received, not only did the two companies lose their previous profits, they also suffered heavy losses of at least 70% of their principal.

In other words, the US$10 billion of Tata Group and Reliance Group’s funds that have been withdrawn now may only be about US$3 million at most.

This is still inaccurate news that Qiao Ge received. The real situation may be a little worse than this.

Those two families are now filled with worries.

However, Qiao Ge felt that they had been tricked, so he could not completely blame them for being greedy.

Because investors in the beautiful country also suffered heavy losses.

Although some had the foresight or had various insider connections to evacuate early, most of them were still stuck here.

According to current rough statistics, some investors from the beautiful country have lost nearly 10 billion U.S. dollars on their investments in the Mexican stock market. Coupled with the depreciation of the peso exchange rate, they have lost a lot of money in exchange for U.S. dollars.

Therefore, these investors suffered even greater losses.

Although Brad Crews has connections on Wall Street, such as friends at Goldman Sachs.

It's a pity that he doesn't have access to senior management at all, so naturally he can't get some inside information.

Not to mention that he is no longer at Goldman Sachs. Even at Goldman Sachs, his level is probably not high enough to have access to some core secrets.

So the investments in his name were harvested like leeks.

After the financial crisis occurred in Mexico, Qiao Ge immediately approached Manmohan.

"Are you planning to invest overseas?" Manmohan asked.

"Yes, I am planning to acquire a steel company." Qiaogo replied, "My funds may be a little short. The government should be able to give me some foreign exchange support, right?"

"How much do you want?" Manmohan asked simply.

The acquisition of steel companies is part of the real economy, and Manmohan certainly supports it.

However, this also involves the scale of funds.

"It won't exceed US$3 million." Qiaogo replied.

Hearing this, Manmohan secretly breathed a sigh of relief and smiled: "Don't worry, this matter will be taken care of by me. I will be ready at home. As long as you need it, the funds will be available immediately." .”

In fact, Manmohan thought that even if Qiaogo asked for 5 million US dollars, he would fight for it with all his strength.

Of course, if there were more, he wouldn't be sure.

Now it is only 300 million US dollars, and I believe Rao will not stop it.

"Then I'll be relieved." Qiao Ge laughed.

He still has more than 100 million US dollars in funds, but this fund is definitely not enough to acquire the Mexican steel company.

So he is going to use government funds.

Of course, the government's side is just one way.

Judging from Lakshmi’s previous acquisitions, it was about US$2 million.

So my funding gap is not big.

Although the banks at Rohatin and Lawrence were unable to get loans, I was so close that Rohatin could lend it to me privately.

Of course, Qiao Ge would not use this kind of private loan if he could.

After all, if the government can get it, it will definitely give priority to the domestic side.

Mexico's National Steel Corporation, that's it.

Qiao Ge actually knew it was this company a long time ago, because the investment capital of this company at that time was more than 10 billion US dollars, which met the conditions in his memory. This company's operations have not been very good in recent years. In addition to internal management problems, there is also the general environment of the downturn in the steel industry, which has led to the company's continuous losses.

If the company was still struggling with financial support from the government before, with the onset of the financial crisis, the government's financial support has been powerless.

Without government financial support, the company suddenly became unsustainable, so the government planned to sell the steel company.

In addition to getting rid of the burden, I also want to get some funds back.

Of course, steel companies are just one of the assets being sold by the government.

The government now needs to sell assets to obtain more funds.

In fact, this is just one of the measures taken by the Mexican government to deal with the impact of the financial crisis. They are now also seeking various foreign aids.

For example, international financial institutions such as the United States and the International Monetary Fund.

Just to get assistance, Mexico must accept various harsh conditions.

First, a comprehensive austerity plan was implemented to tighten finances and increase revenue and reduce expenditure.

In terms of increasing income, it includes selling some state-owned assets, resources, etc. This is the simplest and most direct way.

Qiao Ge now finally knows why this steel company was sold for more than 2 million US dollars in his previous life.

The steel company's continuous losses are only one of the reasons. Another reason is the depreciation of the Mexican peso.

The peso investment used to be equivalent to US$10 billion in U.S. dollars, but now the peso has depreciated so much that it has more than halved when measured in U.S. dollars.

Clark has long been in contact with Joseph Clooney of HSBC Consulting. Clooney is an old friend of Qiaogo's cooperation.

Most of the previous overseas acquisitions were through his hands.

He is Lawrence's most trusted subordinate.

He was specifically responsible for the acquisition of Mexican Steel this time.

After Qiaogo received confirmation of foreign exchange support from Manmohan, he flew to the beautiful country.

Why didn't you remove the ink?

It's a bit chaotic over there, and Qiao Ge doesn't want to take risks. He can just leave the specific operations to the people below.

In the beautiful country, I can also get more news from Rohatin.

Because the Mexican government is now seeking various assistance, and this target is mainly the beautiful country.

As the chief economic adviser, Rohatyn must have a lot of inside information in this regard.

Qiao Ge didn't dare to say that he got all the information from him, but as long as he could reveal a little bit, he would benefit a lot and gain an advantage.

There are still some forces that want to acquire the Mexican Steel Company, and everyone still needs to compete.

When Qiao Ge flew to the beautiful country, a big breaking news broke out in the country.

That is when Tata Group and Reliance Group fell out.

The first to break the news were some media related to the Tata Group. They accused Reliance Group of resorting to cheating methods after its overseas investment failed, and wanted to maliciously default on the debt and not want to bear the losses this time.

This overseas investment is naturally an investment in the Mexican stock market.

They invested US$10 billion, but in the end suffered heavy losses due to the financial crisis. Plus various expenses, the last two companies withdrew about US$2 million.

The news Bi Qiaogo received was worse, and the losses were greater.

It can be said that the losses of the two of them this time reached 8 million US dollars, and 80% was just lost.

This does not include the interest on the loan, and the loss in one year is nearly 90%.

This kind of loss is not much different from losing money.

According to the 2% ratio between Tata Group and Reliance Group at that time, of the US$1.6 million, Tata Group could get US$0.4 million and Reliance Group US$ million.

If the two companies want to pay off the loans, excluding interest, Tata Group will need to raise another $6.4 million and Reliance Group will need to raise $1.6 million.

The term of their loan is three years, but in the current situation, foreign banks believe that it is impossible for them to earn enough US dollars to repay in the next two years, so they can only allow them to repay in advance according to the terms of the contract.

Where did the two families get the U.S. dollars for repayment?

In the end, the foreign banks had no choice but to find the State Bank of India, which guaranteed for them. The State Bank helped them repay the US dollar loans. The remaining US$8 million for the two companies was added to the US$ million repaid by the State Bank.

As a result, the two companies are in default, and the National Bank will confiscate their domestic asset mortgages.

(End of this chapter)