Discussion Paper Abstracts. Aleph - SSO. Up.935.1081959957. Wp07192. International Review of Economics & Finance - Bankruptcy proceedings for sovereign state insolvency and their effect on capital flows. Bankruptcy_proceedings_Jonathan_Thomas. Limo Query Builder. The Ghost of Argentina: What Happens when Countries Go Bankrupt? No, Alexander Lukyanchenko told reporters at a hastily convened press conference last Tuesday, there is "no reason whatsoever to spread panic. " Anyone who was caught trying to throw people out into the street, he warned, would have the authorities to deal with. Lukyanchenko is the mayor of Donetsk, a city in eastern Ukraine with a population of a little more than one million. For generations, the residents of Donetsk have earned a living in the surrounding coalmines and steel mills, a rather profitable industry in the recent past.
Donetsksta, a local steel producer, earned €1.3 billion ($1.65 billion) in revenues last year. But last Tuesday the mayor, returning from a meeting with business leaders, had bad news: two-thousand metalworkers would have to be furloughed. Under these conditions, how could panic not be rampant in Donetsk, the capital of Ukraine's industrial heartland? It is a development that has investors and speculators alike holding their breath. The Ghost of Buenos Aires.